Sunday and

[Black Bart]

some "churchified" questions.

A pastor is asking me things I haven't a clue about (done several preachers's tax returns but never any work for a church itself).

1. Is the church required to file a 990 non-profit return? Something else?

2. Do I get them a federal ID number and file 941s just like everybody else?

[ChEAr$]

some "churchified" questions.

A pastor is asking me things I haven't a clue about (done several preachers's tax returns but never any work for a church itself).

1. Is the church required to file a 990 non-profit return? Something else?

2. Do I get them a federal ID number and file 941s just like everybody else?

As to # 1, I believe (!) the answer is no, but someone else can confirm or deny.

#2.. If they have employees, they had better be maintaining payroll records and
withholding just like any other business. So then, yes.

(Hmm.. I think I'm implying that a church IS a business.)

[gkaiseril]

some "churchified" questions.

A pastor is asking me things I haven't a clue about (done several preachers's tax returns but never any work for a church itself).

1. Is the church required to file a 990 non-profit return? Something else?

2. Do I get them a federal ID number and file 941s just like everybody else?

1. Not required by many choose to.

2. They apply EIN like everyone else with the same form, but pastors and the church has an option with regard to Social Security and Medicare.

The above answers are very short and there are a large number of other issues involving the funds and activities of the church that will require additional research. And a post here is not long enough to cover all of the issues.

There are a number is areas where the church hand government have reporting requirements.

Receipts for contributions, large amounts and yearly totals.

Payroll issues, FUTA, SUTA,. FITW, SITW and possably FICA and Medicare taxes

Large cash transactions.

Unrelated business income earned by the church.

State sales tax exemption certificates, may require state registration.

You may want to look at ISR Pub 4220 Tax Exempt and Government Entities Exempt Organizations, http://www.irs.gov/pub/irs-pdf/p4220.pdf. The publication list many of the additional forms that might need to be filed and list other publications that might be helpful.

You will also have to consider how the church deals with the religious head and staff , there are a number of issues beyond the parsonage. There are options involving Fica and Medicare taxes, etc.

[JohnH]

Here's a link to help with the 990 question (most churched don't need to file it):

http://www.irs.gov/charities/article/0,,id=152729,00.html

The church does need to get a FEI# and report wages & withholding. Even if the only staff person is the pastor, he/she will need to be issued a W-2 at year-end so there is a need for the FEI#.

[Black Bart]

Thanx folks

That helps. Looks like the general consensus is that churches DO NOT have to file a 990 (thanks for the link, John). There's something about a $25K exception to that but my guy's not in that ball park.

Note to kaiser -- thanks for the warning about the various possiblities, but (I should have included this info previously) the reason I just asked the short version was that there's no "for-profit" sidelines and no other staff -- it's just him and his unpaid wife-treasurer. A ''total salary" figure was furnished and that's the complete "books."

I was curious about FUTA and Googled this up from the IRS site (Tax Guide for Churches and Religious Organizations):

"Federal Unemployment Tax Act (FUTA). Churches and religious organizations are not liable for FUTA tax. For further information on FUTA, see IRS Publication 517..."

So FUTA's out of the way and I believe Arkansas has a SUTA church exemption -- will call tomorrow and confirm.

I'll apply for the EIN and make him a W-2 -- filling in lines 1 and 16 only as I understand it since there's no FICA/Med w/h. I know about the housing allowance procedure.