Churches Need Not Apply for 501 (C) (3) Status
**In order to be considered for tax-exempt status by the IRS an organization must fill out and submit IRS
Form 1023 and 1024. However, note what the IRS says regarding churches and church
ministries, in Publication 557:
Some organizations are not required to file Form 1023. These include:
Churches, interchurch organizations of local units of a church, conventions or associations of
churches, or integrated auxiliaries of a church, such as a men’s or women’s organization, religious
school, mission society, or youth group. These organizations are exempt automatically if they meet the
requirements of section 501(c)(3).
Churches Are “Automatically Tax-Exempt”
According to IRS Code § 508(c)(1)(A):
Special rules with respect to section 501(c)(3) organizations.
(a) New organizations must notify secretary that they are applying for recognition of section 501(c)(3)
status.
(c) Exceptions.
(1) Mandatory exceptions. Subsections (a) and (b) shall not apply to—
(A) churches, their integrated auxiliaries, and conventions or associations of churches.
This is referred to as the "mandatory exception" rule. Thus, we see from the IRS’ own publications, and
the tax code, that it is completely unnecessary for any church to apply for tax-exempt status. In the IRS’
own words a church “is automatically tax-exempt.”
Churches Are “Automatically Tax-Deductible”
And what about tax-deductibility? Doesn’t a church still need to become a 501c3 so that contributions
to it can be taken as a tax deduction? The answer is no! According to IRS Publication 526:
Organizations That Qualify To Receive Deductible Contributions
You can deduct your contributions only if you make them to a qualified organization. To become a
qualified organization, most organizations other than churches and governments, as described below,
must apply to the IRS.
In the IRS’ own words a church “is automatically tax-deductible.”
FROM IRS.GOV
Every organization exempt from federal income tax under Internal Revenue Code section 501(a) must file an annual
information return except:
1.
A church, an interchurch organization of local units of a church, a convention or association of churches,
2.
An integrated auxiliary of a church,
3.
A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs,
4.
A school below college level affiliated with a church or operated by a religious order,
5.
Church-affiliated mission societies if more than half of their activities are conducted in, or are direct at persons in,
foreign countries,
6.
An exclusively religious activity of any religious order,
7.
A state institution, the income of which is excluded from gross income under section 115,
8.
A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United
States, and is exempt from Federal income taxes,
9.
A black lung benefit trust described in section 501(c)(21) (required to file Form 990-BL, Information and Initial Excise
Tax Return for Black Lung Benefit Trusts and Certain Related Persons),
10.
A stock bonus, pension, or profit-sharing trust that qualifies under section 401(required to file Form 5500, Annual
Return/Report of Employee Benefit Plan),
11.
A religious or apostolic organization described in section 501(d) (required to file Form 1065, U.S. Return of Partnership
Income),
12.
A foreign organization, incljding an organization located in a U.S. possession that normally does not have more than
$25,000 in annual gross receipts from sources within the United States,
13.
A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48,
1995-2 C.B. 418,
14.
A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF,
Return of Private Foundation),
15.
A political organization that is a state or local committee of a political party, a political committee of a state or local
candidate, a caucus or association of state or local officials, or required to report under the Federal Election
Campaign Act of 1971 as a political committee.
16.
An exempt organization (other than a private foundation) having gross receipts in each tax year that normally are
not more than $25,000). Note, however, that these organizations may be required to file an annual electronic notice
- e-Postcard (Form 990-N), for tax periods beginning after December 31, 2006.
READ THIS ALL HERE ON IRS.GOV
COLORADO SALES TAX INFO:
RELIGIOUS ORGANIZATION EXEMPTION
ALL SEEDS ARE EXEMPT AS WE ARE AN AGRICULTURE INDUSTRY
Churches Have a Mandatory Exception To Filing Tax Returns
Not only is it completely unnecessary for any church to seek 501c3 status, to do so becomes a grant of
jurisdiction to the IRS by any church that obtains that State favor. In the words of Steve Nestor, IRS Sr.
Revenue Officer (ret.):
"I am not the only IRS employee who’s wondered why churches go to the government and seek
permission to be exempted from a tax they didn’t owe to begin with, and to seek a tax deductible status
that they’ve always had anyway. Many of us have marveled at how church leaders want to be regulated
and controlled by an agency of government that most Americans have prayed would just get out of
their lives. Churches are in an amazingly unique position, but they don’t seem to know or appreciate
the implications of what it would mean to be free of government control."
from the Forward of In Caesar's Grip, by Peter Kershaw
When a church accepts the 501c3 status, that church:
* Waives its freedom of speech.
* Waives its freedom of religion.
* Waives its right to influence legislators and the legislation they craft.
* Waives its constitutionally guaranteed rights.
* Is no longer free to speak to the vital issues of the day.
* Becomes controlled by a spirit of fear that if it doesn’t toe the line with the IRS it will lose
its tax-exempt status.
*Becomes a State-Church.
The church in America today is, by and large, not speaking to the vital issues of the day. The church
has been effectively silenced. There has been a chilling effect upon the church’s freedom of speech
for fear of IRS retribution should the church get out of line. The inevitable result is a moral downward
spiral in the culture as the church stands mute.
This did not happen by accident, but by design, and it is something of relatively recent design.
Churches were added to IRS Code § 501c3 in 1954. All one need do is analyze who is responsible for
sponsoring the congressional bill to include churches in § 501c3 and it should become apparent that
his agenda was not to empower the church, but to silence the church (hint: the sponsor was a Senator
from Texas who later became President).
The free speech which churches have enjoyed for centuries in America was not stolen from
them, rather, they unknowingly gave it away when they replaced their natural exempt status
as an unincorporated church with a new and substantially different status as a government
authorized tax exempt 501(c)(3) corporation. The government legally (although not equitably
in this author's opinion) claims a vested interest in the assets of such government created
organizations by reason of the government granted tax exemption that these unnatural
entities are not otherwise entitled to. (Churches that are not incorporated are not taxable
entities nor do they fall under the purview of the law applicable to 501(c)(3) corporations;
however, they do face other risks and liabilities which corporations do not.) It appears the
original intent of the law as crafted in 1913 was not aimed at eventually stripping churches
of their free speech but that is the result of it today. Extracting a church from being a 501(c)
(3) corporation and returning it to its natural place is not an easy thing to do and it could
result in the government confiscating all of the church's assets or forcing it to transfer the
assets to another 501(c)(3) organization. This is a very real probability under the same
legally upheld reasoning that permits them "to ensure that the assets of such organization
are preserved for charitable or other purposes specified in § 501(c)(3)."
Our EIN 80-051****, for compliance with A.G. Suther's state
requirements, *HOW EVER WE ARE AN EXEMPT CHURCH*
(How ever we are registered and licensed by IRS, CO/WY Health Dpt, CO Dpt Revenue & Secretary of State, TO OBLIGE ALL
LEGAL REQUESTS BY A.G.'s & D.O.J. & IRS, but don't file yearly reports as we never exceed 5,000 $ in contributions or assets)