Small church starting up-please tell me there are no significant filing requirements

[Bird Legs]

Churches-501(c)(3)

I am a member of the Methodist Church, treasurer for 16 years.
As you know the Methodist Church is a connectional church with a central ruling government. Have on file with the IRS one application. Whenever a new church is formed it is automatically added to the exemption on file. No application needed.
In the instance that Black Bart talks about, where someone says I am going to start an independent church out here, and does, members donate money to the church,
deduct it on their tax return, the IRS will have no knowledge of the tax exempt status
of that organization. Also, if that church went to buy supplies, what do they say when asked for a letter from the IRS stating that it is a charitable organization and is exempt from sales tax.
This happened one time at our church and I contacted the Southwest Conference office
and obtained a copy of the IRS letter for proof.
Have a client who is a member of the Church of Christ. He and some others started a
new congregation about 15 yrs. ago. They had to apply for their 501(c)(3) exemption.
The Church of Christ church is autonomous, not under an umbrella.

[Gretel]

Thanks Bird. Just for clarification, I understand that, for purposes of getting other tax benefits a church has to have an exemption letter. So is that sense it is necessary to apply.

But just by IRS rules, do they have to or not?

[Bird Legs]

Church Exempt Status

Mea Culpa, my apologies. I misread what I had read. Churches are SPECIFICALLY EXEMPT under section 508(c), from having to file form 1023 with the IRS.
Maybe I need some more coffee.

[Black Bart]

You're right on the mark here, Thom.

...the treasurer's...have no idea how to file reports for withholding. Most of the time the Pastor is the "expert" and most of what he knows is wrong. As for setting up accountable expense plans - forget it - they are lucky to be able to get the bills paid and balance the checkbook.

Many times the pastor's wife is the unofficial "bookkeeper" and the only question she usually has is this: "I went to the bank of open an account for the church, but they said I need a federal ID number or somebody's social security number. The church doesn't have any numbers, so I gave them my social security number. The account draws interest but I don't get it; the church gets it. The teller said I'd have to pay taxes on it. Is that right?"

Snag: You're pretty lucky if they're so business-minded as to send you a blank W-2 to fill in. I used to have one who brought in his "salary" as a only a single figure written on a torn-off piece of notebook paper. I complained to him that I needed something more "official" than that and he said "Oh, yeah. I get it -- don't worry, I'll get something for you." Next week he brought me in a receipt torn out of one of those Wal-Mart rent receipt books. On it was written "$12, 000 (or whatever) paid to Pastor Paul Pious." It was signed Such-and-Such Church by Mrs. Paul Pious, Treasurer. Now that, he felt, surely had the ring of formal authority, assuring IRS of their credibility.