There are serious ramifications for PTAs that have had their tax exempt status revoked by IRS.
Any contributions made to the PTA and any fundraising may become taxable income.
Anyone who has made contributions to the PTA cannot claim the contribution on their tax returns.
Your unit cannot use the NYS Sales Tax Exempt Number for purchases, or when working with vendors for fundraising.
A PTA that has lost its tax-exempt status through automatic revocation may be required to file income tax returns and pay any applicable income taxes:
Form 1120,
U.S. Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of an organization’s tax year.
In addition the PTA, a section 501(c)(3) organization, that loses its tax-exempt status will not be identified in the IRS Business MasterFile extract as eligible to receive tax-deductible contributions, or be included in
Publication78, Cumulative List of Organizations described in Section 170(c) of the Internal RevenueCode of 1986.
To have its tax-exempt status reinstated, the organization must file an application for Exemption Form 1023. An organization may also request retroactive reinstatement as part of its application.
All PTAs organized under NYS PTA must comply with all IRS and NYS Tax Department regulations to remain an active unit.