Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I dont work directly for a church that I attend, however,

Customer Question
I don't work directly for...
I don't work directly for a church that I attend, however, I do participate in a group that is associated with the church (non-profit status). With this group, I tally expenses. Is there a way to seek an unbrella status from the organization or declare my own deductions under the organization in some way. In other words, can the group I am leading declare tax-exemption if the organization (the main church with non-profit status) extends "just a letter" of extending non-profit status under their name?
Submitted: 8 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 day by:
7/1/2010
Tax Professional: BK-CPA, Certified Public Accountant (CPA) replied 8 years ago
BK-CPA
BK-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 933
Experience: Owner of a CPA firm
Verified

I'll walk you through the code some below (look for bolded parts, end is the 'big gap' below if you want to skim to the bottom):

§ 501. Exemption from tax on corporations, certain trusts, etc.

How Current is This?

 

(a) Exemption from taxation An organization described in subsection (c) or (d) or section 401 (a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503.

 

(b) Tax on unrelated business income and certain other activities An organization exempt from taxation under subsection (a) shall be subject to tax to the extent provided in parts II, III, and VI of this subchapter, but (notwithstanding parts II, III, and VI of this subchapter) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes.

 

(c) List of exempt organizations The following organizations are referred to in subsection (a):

 

(1) Any corporation organized under Act of Congress which is an instrumentality of the United States but only if such corporation-

(A) is exempt from Federal income taxes-

(i) under such Act as amended and supplemented before July 18, 1984, or

(ii) under this title without regard to any provision of law which is not contained in this title and which is not contained in a revenue Act, or

(B) is described in subsection (l).

 

 

(2) Corporations organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt under this section. Rules similar to the rules of subparagraph (G) of paragraph (25) shall apply for purposes of this paragraph.

 

(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

 

 

 

 

 

 

 

 

....

 

 

 

 

 

 

...

 

 

 

Internal Revenue Code Section 501(c)(3) above describes most common forms of non-profit companies. The church cannot simply extend a letter, no, as it would have to report your activities if applicable, otherwise, on its own return. If your church's accountant wants to include/combine all of your group's activities with the church's itself because it's appropriate under the circumstances, then by all means have at it. From your description, it sounds as though you will have to go the "normal route" for your organization when it comes to applying for and obtaining non-profit status yourself under IRC 501(c)(3). Pay attention to state and local law too then as applicable, and not just the federal law IRC 501(c)(3).

 

Sorry that may not be what you wanted to hear, but feel free to browse through all the non-profit qualifiers under 501(c)(3), located here:

 

http://www.law.cornell.edu/uscode/26/usc_sec_26_00000501----000-.html

 

 

Thank you for your question.

 

 

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask BK-CPA Your Own Question
BK-CPA
BK-CPA
BK-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 933
933 Satisfied Customers
Experience: Owner of a CPA firm

BK-CPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Lane answered my question regarding whether or not a Faith
Lane answered my question regarding whether or not a Faith based non-profit was required to file State or Federal taxes. That answer was no. Since we are a start up Church with no salaries (100% volun… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Nonprofit organization taxation What would be the reasonable
nonprofit organization taxationWhat would be the reasonable cause to file form 1023. church just find out they have not file their annual return since their formation in 2013. they want to file reinst… read more
abci168
abci168
Principal
27 satisfied customers
Lane, I have a parent soccer association in NJ which needs
Hi Lane,I have a parent soccer association in NJ which needs to open a bank account. The bank is requiring an EIN number as well as a Certificate of Incorporation or Formation. Does that mean they hav… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Quoting a letter from IRS, July 17, 1997: "In April of 1945
Quoting a letter from IRS, July 17, 1997: "In April of 1945 we issued a determination letter(c) 3 that recognized your organization as exempt from federal tax under section 501(c) (13) of the IRS code… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm selling land in PA that is in the name of the church. It
I'm selling land in PA that is in the name of the church. It is incorporated as a non-profit. I'm in the process of acquiring a Exempt Organization Affirmation Letter from the IRS. The closing costs t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Non-Profit Accounting Question: I work for a 501c3
Non-Profit Accounting Question: I work for a 501c3 non-profit Church organization. We regularly give money to other 501c3 non-profits to support the work they are doing. One organization we are workin… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
If an artist co-op charges an annual fee to its members is
If an artist co-op charges an annual fee to its members is the income (fee) taxable by the IRS? The co-op has no legal standing through the IRS. The fees are used to cover the cost for running the co-… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My non-profit client has been approached by a company that
My non-profit client has been approached by a company that has not yet received non profit status. unclear whether they applied. For a joint community project, my client is to receive funds - donation… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I own a business and would like to expand under the same
I own a business and would like to expand under the same name (business structure) and want to have separate EINs at each of the additional locations. May I do that?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
CAN A NON-PROFIT CHURCH RECEIVE RENTAL INCOME,FROM RENTAL FEE
CAN A NON-PROFIT CHURCH RECEIVE RENTAL INCOME,FROM RENTAL FEE 2ND FLOOR OF A STORE FRONT BUILDING ZONED AS A CHURCH? THE 2ND FLOOR IS AN TWO OR ONE BEDROOM APARTMENT WHICH WOULD BE AVAILABLE BY THE GE… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am the Secretary/Treasurer of County Line Cemetery Association
I am the Secretary/Treasurer of County Line Cemetery Association which is a Non-profit organization. Our Charter Number is XXXXX and our Tax ID number is XXXXX We have been contacted by ExxonMobil to … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
how does a non profit organization register with IRS to get
how does a non profit organization register with IRS to get a 501c status. Also, is there some cost associated with registering with the IRS. Here is the background: The organization is a booster club… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Churches. Although a church, its integrated auxiliaries, or
Churches. Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible … read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
I am employed full-time with a private employer. I have been
I am employed full-time with a private employer. I have been forwarding my payroll check into an account for a church which I founded. IRS have claimed that I owe them several thousands of dollars wit… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am working with a religious monastery that is a 501c3 organization. They
I am working with a religious monastery that is a 501c3 organization. They have not filed any form 990s as they are not required. They are in the process of signing a mineral rights lease whereby they… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
do u have get a tax exempt number for a church to receive tax
do u have get a tax exempt number for a church to receive tax examt status? any advantages to being inc?do u have to be inc or charter in ga to ordain pastors into ministry. we are starting a new chur… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Can you function as a non-profit Christian organization without
Can you function as a non-profit Christian organization without being registered and having a tax ID number? Can the ministry function under the umbrella of another non-profit organization, such as a … read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Charity deduction for an org whose receipts are below $5000
Last year I contributed some cash, non-cash and volunteer time for an organzization which is registered non-profit corporation (educational purposes) in state of CA. They have not yet got the 501c(3) … read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x