The Internal Revenue Code (IRC) defines specific federal tax rules given to religious organizations, associations of churches, churches, and conventions. Under IRC Section 501 (c) (3), churches and different church-controlled organizations are permitted to obtain tax-deductible contributions. To learn more about the IRC, visit the IRS-EIN-Tax-ID website to speak with knowledgeable Govt Assist agents.
Requirements for Tax Exemption with Federal Government
Church-controlled organizations and churches must qualify for tax exemption by meeting the following requirements:
- Net income cannot benefit a stakeholder or private individual
- Operate exclusively for religious, charitable, scientific, or educational purposes
- The organization?s operations can?t be illegal
- The organization must not participate in political campaigns
- Related activities must not influence legislation
If these requirements are met, church-controlled organizations and churches automatically receive tax-exemption status without filing a request with the IRS.
Benefits of EIN
Although certain church-controlled organizations are tax exempt, they should still apply for an Employer Identification Number (EIN). An EIN allows these organizations to complete many essential tasks, regardless of the number of employees they have.
An EIN allows the organization to accomplish the following:
- Be entered as a subordinate in a group ruling
- Provide the IRS with returns, such as Forms 1099 and W-2
- Open a bank account under the name of the organization
Without an EIN, these organization would be unable to receive these benefits.
Easy, Fast, and Secure
The easiest way to apply for an EIN is online through the IRS-EIN-Tax-ID website where they also provide trust Tax ID filing as well. Their simplified application prevents common mistakes organization make when filling out their information. After submitting the application, your number is securely delivered to you via email within an hour. Any time after submitting the application, you can check the EIN status by entering your email or order number.