REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
The Revocation Task Force was created to develop best practices and related resources for
state PTAs to use in assisting local units to maintain compliance or come into compliance with
IRS guidelines and filing requirements. This task force consisted of staff and volunteers from
National PTA and state PTAs of all sizes and capacity to ensure that all states would be able to
use these best practices. The contributing states were chosen for their proven results around
this topic. We thank each and every member that contributed to this document and hope that all
of our state congresses can use this document to help inform their own internal processes.
Revocation and Reinstatement Subcommittee
Sue Owen – Ohio State PTA Executive Director
Erika Trujillo – California State PTA Assistant Executive Director, Finance
Kelly Piatt – Delaware State PTA Treasurer
Tim Duke – Tennessee State PTA Treasurer
Heather Dean – National PTA Deputy Executive Director, Programs and Operations
Federal Compliance Subcommittee
Laura Bay – National PTA Secretary-Treasurer
Lisa Anderson – Utah State PTA Treasurer
Rita Lowman – Maryland State PTA President
Mac Saleh – Michigan State PTA Membership Co-Chair
Dawn Ducca – Michigan State PTA Field Service Representative
LeeAnn Espinoza – Nebraska State PTA President
Jessica Renzi – National PTA Senior Accounting Manager
Resources and Training Subcommittee
Janet Lamoureux – Florida State PTA Treasurer
Teresa Willis – Maryland State PTA Office Administrator
Don Romoser – Connecticut State PTA President Elect
Pam O’Brien – Rhode Island State PTA President
Sharon Pender – Louisiana State PTA President
Suzan Yungner – National PTA Director of Field Service and Training
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Contents
Practices and Processes to Support Federal Compliance .......................................................... 3
Training .................................................................................................................................. 3
Communication ...................................................................................................................... 4
Reporting ................................................................................................................................ 5
Collection ............................................................................................................................ 5
Review ................................................................................................................................ 5
Upon Revocation of Tax-Exempt Status..................................................................................... 7
EXHIBIT 1 .............................................................................................................................. 8
EXHIBIT 2 .............................................................................................................................. 9
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Practices and Processes to Support Federal Compliance
Training
Training your local units is essential in ensuring the proper and timely filing of Form 990, Form
990-EZ or Form 990-N (Forms 990). The states most successful in the endeavor offered
training in a variety of avenues, such as face-to-face, e-learning and/or webinar. As a
recommended best practice, these opportunities should occur within 100 days of the newlyelected board taking office, and two board members, including the treasurer, should attend
training on Federal Compliance requirements.
For your information:
IRS Form
Gross Receipts
Form 990-N
Total Assets
< $50,000
Form 990-EZ
>$ 50,000 but < $200,000
Form 990
>$200,000
NA
< $500,000
And/or > $500,000
Resources found at www.pta.org/

Form 990-N training with relevant screen shots

Form 990-EZ PTA-focused instructions

Form 990-EZ live webinar with step-by-step instructions using the provided 990-EZ
template each fall

Form 990-EZ PowerPoint with script for states to provide at conventions or other
leadership and training events

Mini-training pieces on the following:

o
1099 Misc (available fall 2013)
o
Schedule A & B (info from Money Matters)
o
Schedule G
o
Schedule O
o
990-T (Unrelated Business Income) (available fall 2013)
Link to changes in 2013 Forms 990: http://www.irs.gov/Charities-&-NonProfits/Charitable-Organizations/2013-Form-990-and-990-EZ:-Significant-Changes
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Another very effective tactic used by some states in getting their units to file their Form 990s in a
timely fashion is a “traveling roadshow.” Using this method of delivery, volunteers and/or staff
from the state travel to different regions, set up stations with laptops and help the unit to file
onsite, which is very easy for the Form 990-N filers. Summer leadership events would also be a
great place to offer this virtual filing. Simply add this to the agenda of your training, and ensure
the EINs for the units are readily available.
Communication
Communication is often critical to a unit’s success. Several recommended options for ways to
communicate with your units are listed below. Select the option or combination of options most
effective in your state, and ensure that the communication is regular and timely:

E-blasts: Remind units of filing deadlines. These emails can be sent out by both the
state and/or regions/councils/districts. Include links to information online. (Exhibit 2)

Websites: Post information on state website. Request that your regions/councils/districts
post information or link directly to the state and national websites. Include key
information like deadlines and links to training opportunities. (Exhibit 2)

Training: Consider offering training locally, regionally and statewide. Encourage your
regions/councils/districts to offer or host training.

Newsletters: Put reminders in your newsletter(s). (Exhibit 2)

Conference Calls/Webinars: Offer the chance for specific questions at the state and/or
the region/council/district levels.

Individual Reminders: Send reminders 90, 60 and 30 days prior to the Forms 990 due
dates to units based on fiscal year.

Mailings: Include a flier about Form 990 information if you send periodic communications
to your units. (Exhibit 2)
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Reporting
Collection
The states with the best local unit federal filing compliance have within their governing
documents (bylaws, standards of affiliation, and/or standing rules) mandatory submission of
certain documents to be a unit in good standing. This requirement will not only help ensure that
the unit is functioning properly, but also, in the instance where a poor transition of officers
occurs, the state can help the unit with accessing prior records.
Please note, states operating with group exemptions should be aware that (in accordance with
IRS Rev. Proc. 80-27, Section 4) subordinate units are subject to its “general supervision or
control.” Collection and review of the above documents will ensure that this provision is met.
The following documents may be required by the state in order for a unit to be in good standing:

A copy of the Form 990 or Form 990-EZ within 30 days of filing. For the units that file a
Form 990-N, a copy of the email confirmation that the form was filed.

A copy of the annual review/audit report

A copy of the most recent bylaws, if applicable

A current list of board members with contact information
Review
Unit leaders may assume, if they are sending these documents to the state, that they will be
reviewed and monitored. Review of these documents can be done by committee, staff
resources, random sample or any other method that your state finds effective. Establish a
reporting matrix to determine which units have complied and which units may need reminders or
assistance.
Things to check during the review:

Correct fiscal year

Correct EIN number

Correct PTA name
Note: These steps may and should be tailored to include state compliance requirements where
applicable.
Resources:

National PTA is exploring the cost of creating a database tool where the above
documents may be uploaded, reviewed and stored by the states. Further information
will be provided when/if this tool can be developed.

Pull the IRS data in Excel format to collect information listed
above. http://www.irs.gov/uac/SOI-Tax-Stats-Exempt-Organizations-Business-MasterFile-Extract-(EO-BMF) . This would be an easy and efficient way to review the
information identified to verify the above.
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Checking on Compliance Status
A volunteer, preferably the state treasurer or staff person, should monitor the IRS revocation list
monthly for new revocations.
Resources to look up individual unit status:

Link to IRS list of revoked organizations: http://apps.irs.gov/app/eos/

Link to search tips: http://www.irs.gov/Charities-&-Non-Profits/Exempt-OrganizationsSelect-Check-–-Search-Tips
Steps to comprehensively review all units for compliance, etc.:

Download the “Automatic Revocation of Exemption List,” filter down to applicable state,
and then filter to include only name and/or secondary name that includes PTA, PTSA or
your congress name: http://apps.irs.gov/app/eos/forwardToRevokeDownload.do

Search by revocation posting date, review and add units from your state or pull the full
download list:
http://apps.irs.gov/app/eos/mainSearch.do?mainSearchChoice=revoked&dispatchMetho
d=selectSearch
Note: Timing may be an issue where units do not appear as a unit revoked or a unit in good
standing, usually occurring just before their status is being changed.
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
Upon Revocation of Tax-Exempt Status
1. Send a joint letter from the State and National PTAs to the local unit officers stating that
the unit’s tax-exempt status has been revoked, offering resources to support the
reinstatement process and detailing the consequences of not filing for reinstatement.
Resources:

Word template customizable for each state (EXHIBIT 1)
2. Share National PTA’s Reinstatement Template and checklist (or links) on the state PTA
website, if applicable. Instructions are provided for new streamlined procedures for units
within 15-months of revocation, as well as old instructions for units outside of the 15months. There is also a pre-filled Form-1023. Please keep in mind a new Form 1023-EZ
will be rolled out during summer 2014 to follow streamlined instructions. This will be
posted on the website as soon as it becomes available for the public to use for filing.
Resources:

www.pta.org/taxhelp
3. Request local PTAs sign a Form 8821 upon revocation so that the state PTA may speak
to the IRS on its behalf. Some states have the practice of becoming the unit’s registered
agent. In this case, the state would have similar rights as a power of attorney.
Resources:

Form 8821 (power of attorney) and instructions: http://www.irs.gov/pub/irspdf/f8821.pdf
4. Advise the local PTA leaders to file a Form 1120 business return. Local units only file
this return if they choose not to file for reinstatement, relinquishing their ability to operate
as a PTA.
Note: Notice of reinstatement can take up to one year. Instruct the local PTA leaders to
be patient and operate as usual in the interim, but ensure that they know they may not
solicit “tax-deductible” donations during this time.
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
EXHIBIT 1
[Print on state PTA letterhead or insert logo]
[Date]
[Local PTA Name]
[Street Address]
[City, ST ZIP Code]
Dear [Local PTA Name]:
Recently, the IRS issued letters revoking the tax-exempt status of numerous organizations,
including some local PTAs, for failure to file information returns (Form 990) for three (3)
consecutive years. It has come to our attention that you have or will receive such a letter.
Per the bylaws of our association, all PTA’s must be tax-exempt (501(c)(3) organizations.
[State PTA] and National PTA have resources to help you reinstate your tax-exempt status with
the IRS. Please see the following PTA websites that include prefilled templates, FAQs, IRS
links and webinars:
[State PTA Website Link] or www.pta.org/taxhelp
Feel free to contact the [State PTA] Office for assistance if you need additional help. [State
PTA] leaders look forward to continuing working together with your PTA as part of the oldest
and largest volunteer child advocacy association in the nation.
We hope that you find these resources helpful. Please note that if you choose not to go through
the steps to reinstate your 501(c)(3) status, your parent group will:





Be required to pay taxes on proceeds from all fundraisers
No longer be able to collect tax deductible contributions
No longer operate as a PTA
No longer have access to PTA resources and benefits
Be required to submit all PTA funds to [State PTA] or other like 501(c)(3)
[State PTA] will contact the IRS to inform them that your PTA has dissolved and is no longer
doing business as a non-profit organization.
Sincerely,
[Your Name]
President, [State PTA]
(Updated 4/16/2013)
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REVOCATION TASK FORCE
REPORT OF BEST PRACTICES
EXHIBIT 2
REMINDER – Form 990 filing is due to the IRS by November 15 for
PTAs with a June 30 fiscal year end!
ALL PTAs must file a Form 990 per the IRS. Below is a table to determine what type of
990 your PTA should file and resources to help you prepare it:
IRS Form
990 N
990-EZ
990
Gross
Receipts
< $50,000
>$50,000 but <
$200,000
> $200,000
Total Assets
NA
< $500,000
and/or >$500,000
1-2 hours
Hire a CPA
Time
Commitment
1-2 minutes
Links to
Forms
www.epostcard.for
m990.org
www.irs.gov/pub/irspdf/f990ez.pdf
www.irs.gov/pub/irspdf/f990.pdf
Links to IRS
Instructions
www.irs.gov/pub/irspdf/i990ez.pdf
www.irs.gov/pub/irspdf/i990ez.pdf
www.irs.gov/pub/irspdf/i990.pdf
Links to PTA
Instructions
www.pta.org/taxhelp
www.pta.org/taxhelp
PTA recommends
engaging a CPA
knowledgeable in
nonprofit organizations
(Updated 4/16/2013)
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