Category Archives: Church Taxes

Church & Non-Profit Explained (Part 4)

IRS Determination Letter (Form 1023)
If a church decides to apply for and obtain recognition of tax-exempt status, then it must complete Form 1023 with the IRS. Upon approval, the IRS will send a Determination Letter to the applicant. It is also referred to as a 501(c)(3) Exemption Ruling Letter or simply your tax letter. At [...]

Church & Non-Profit Explained (Part 3)

Federal Taxes fall into two categories:

Federal Income Tax
Federal Unemployment Tax

Federal Income Tax
As discussed in the previous section, churches that operate according to IRS 501(c)(3) guidelines are exempt from federal income taxes. As such, “net income” disclosed on the church’s “Profit & Loss Statement” is not subject to federal tax. These churches are referred to as [...]

Church & Non-Profit Explained (Part 2)

EIN stands for Employee Identification Number. Applying for an EIN will be your first step in forming your church. You will need to complete IRS Form SS-4, which is the Application for an Employer Identification Number. You can apply online by going to Within five minutes, the IRS will send you an acknowledgment of [...]

Church & Non-Profit explained (Part 1)

Over the next few posts, we will be discussing some common questions regarding church and non-profit taxes. This should serve as a guide in understanding tax terminology and making sense of the IRS, Federal tax, State Tax, Incorporation, etc.
Terminology: “Non-Profit” / “Tax-Exempt” / “501(c)(3)” / Etc.
“Non-profit”, “tax-exempt”, “501(c)(3)” and “charitable organization” are often used interchangeably. [...]