Archive: Church

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Sweat the Small Stuff: Key Considerations for Churches

Most people have heard the saying, “Don’t sweat the small stuff.” While this is a sound philosophy in many circumstances, it is not always the case—especially when it comes to seemingly small details that could have a large impact on your church or organization.  In this sense, small stuff can be viewed as tasks that […]

Are Churches required to obtain a tax determination letter?

An organization seeking exemption under section 501(c)(3) of the Code is required to apply for recognition of exemption on Form 1023. However, churches, their integrated auxiliaries, and conventions or associations of churches seeking section 501(c)(3) status are exempted from this application requirement. Churches that meet the requirements of section 501(c)(3) are automatically considered tax exempt […]

IRS Issues New Guidance for Church Plan Determination Letters

The IRS has issued Revenue Procedure 2011-44 http://www.irs.gov/pub/irs-drop/rp-11-44.pdf which modifies the procedures for requesting a determination letter for a retirement plan of a church.  The new rule requires that the plan participants and other interested parties must be notified of the determination letter request, and the notification must be included with the request to the […]

Do the church’s auxiliary activities create a tax liability?

It’s dangerous relying on the assumption that all sources of income are exempt from federal income tax. Churches need to know the IRS code and how it applies to the various revenue generating activities of the church.  For example, if a church sells coffee, is this income subject to federal income tax?  The answer is, […]