501 C3 Compliance
Churches and religious organizations, like many other charitable organizations qualify for exemption from federal income tax under IRC section 501(c)(3) and are generally eligible to receive tax deductible contributions.
The IRS is able to request from churches at any time, the minutes, and other documents to make sure a church is operating in compliance. They will review the minutes of the church and all decisions made by the leadership to ensure they comply with the churches bylaws and that all salaries, pastoral love gifts, stipends, reimbursements, purchases were all documented in the churches minutes and approved in board meetings. Failure for the church to provide such evidence will result in “Immediate Sanctions”. The law imposes an excise tax of 25% for any violation that can be increased to 200% if the church or ministry does not correct the problem before the end of the year.
WWTS assists churches by educating staff on the certain requirements that churches must maintain to remain tax exempt. There is a growing need for churches to understand the tax requirements, however many church leaders do not know where to look for answers.
WWTS is the answer, our staff will train in the following areas:
Accounting and record keeping
Creating board meeting minutes
Unrelated business income reporting
How to correctly setup Pastoral Love Offerings, and Stipends
Creating a Housing Allowance
How to correctly opt out of social security
Contact our office today, to set up a free consultation.