Bruce Butz, Maryland PTA Treasurer
Welcome back to a new school year. By this time, you all should hopefully be working toward an approved budget, signature cards should be completed for new officers, and fund raisers should be in place.
IMPORTANT NEWS FROM THE OFFICE OF THE MARYLAND COMPTROLLER:
Because of the passage of House Bill 232 in July 2013, PTAs will no longer be responsible for collecting sales tax on any of their fundraising sales.
This does not infer that PTAs are exempt from paying sales tax on items they purchase. Therefore, you must provide any vendor, with which you do business, with the Blanket Certificate of Resale to avoid paying the sales tax on taxable items. These certificates have a purchase threshold of $200. If you do not meet this threshold or the vendor does not accept the certificate (though they are supposed to), you must pay the sales tax and then request a refund from the Office of the Maryland Comptroller. You must still report $0 regularly when reporting Sales and Use Tax to the Comptroller’s Office. PTAs must still pay sales tax on all taxable items purchased that are not for resale and cannot request a refund for that. Please provide Maryland PTA with your sales and use tax license number if you have not already done so. PTAs are now permitted to apply for their own Sales and Use Tax Exemption Certificate which will mean that they no longer have to pay sales tax on any purchases in the state.
Your fiscal year has ended. It is not necessary to wait until November 15 to file the required paperwork. You can do it now. Remember that you must send a copy of whichever form you file to Maryland PTA by December 15. IRS imposes a $20/day penalty for filing late.
If your local unit had gross receipts of $50,000 but less than $200,000 (more than $200,000 requires a 990.), you are required to file IRS Form 990EZ and the accompanying Schedule A (Schedule B and others as necessary.) This form is due by November 15. Please make sure that your 4 digit GEN code, Block F, is listed as 1999. This code identifies you as part of the Maryland PTA group. IMPORTANT: This should be sent to IRS via Certified Mail.
If your local unit had gross receipts of less than $50,000, you must go to the IRS website and locate and complete form 990N. This is relatively simple to complete and must be completed on line by November 15. Be sure to send us a copy of your confirmation email from the IRS. If you wish to file the 990-EZ instead of the 990-N, you may do so.
If you fail to complete either form, you could lose your nonprofit status and thus would be required to pay income tax on all profits.
According to Maryland PTA Bylaws, you are required to submit a copy of the financial (audit) review report and the final financial statement to Maryland PTA. These are due in the Maryland PTA office by October 31st.
Charitable Solicitation Updates
While you are working on the 990, why not also complete the Annual Update of Registration for Charitable Organizations and the accompanying Certification Form. Every PTA with gross income of $25,000 is required to register the first year and then complete an Annual Update of Registration thereafter. PTAs will be required to pay a fee based on the gross income and provide a copy of a 990-EZ or complete the Maryland form COF 85. It is strongly encouraged by both the Secretary of State and Maryland PTA that every PTA registers regardless of their income level because there are benefits to you as a PTA. Potential donors are able to check the Secretary of State’s website to determine registered charitable organizations. For those PTAs under the $25,000 threshold, the only form needed is the Exempt Organization Fund-Raising Notice. The necessary forms can be found on the Secretary of State’s website www.sos.state.md.us. These are due December 31. Remember to send a copy of whichever document you file to Maryland PTA.
The Maryland PTA bylaw amendment passed by the Convention delegates in 2013 mandated that all treasurers and one other board member to attend a MDPTA sponsored training on tax forms within 120 days of taking office.
The Treasurer and one other board member must be trained on the Maryland and Federal filing documents following each election or re-election. Much of this mandated training will be done via the internet but can also be included in Regional Trainings or All-Day Financial Trainings.
The All-Day Financial Training workshops for treasurers, or anyone else, discuss such issues as Budgets, 990s, Financial Reviews (audits), funding, sales tax, and basic Treasurer Responsibilities. Check the Maryland PTA Website’s Training Calendar as new training dates are often added.
2014 Personal Property Return
Some local units still have not submitted a copy of their 2014 Personal Property Report to Maryland PTA as part of the requirements for the Standards of Affiliation. This was due April 15. Please provide a copy to Maryland PTA ASAP. For those PTAs who are delinquent and have forfeited their incorporation status, it will be necessary to complete the revival of your charter along with the accompanying $100 fee and complete all missing Personal Property Reports.
All PTAs should have paid their insurance. This should have been paid prior to July 1 to avoid the $25 penalty. Make sure that the information sheets provided by the insurer (red, yellow, & green lights) are carefully read, understood and followed. It cannot necessarily be “business as usual.” If you have questions or concerns, do not hesitate to contact the BB&T agent, information is on the MDPTA website.
Help is always just a phone call or email away. However, for all of your financial needs, “Help” is in the form National PTA’s Money Matters, Maryland PTA’s Cash Encounters, or a full day of financial training.
Good luck and have a great year.
Bruce Butz, Maryland PTA Treasurer
Maryland PTA Welcomes our 2014-2015 Sponsors!
5 Central Avenue • Glen
Burnie, Maryland 21061
800-707-7972 • 410-760-6221 • 410-760-6344 Fax