TAX & LEGAL FAQ

Tax & Legal Frequently Asked Questions

Please know that the paragraphs below are intended to be purely informational and do not constitute an official endorsement by CB Northwest of any individual, organization, or resource tool. If you are searching for assistance in one of these areas, we would encourage you to go through a responsible "due diligence" process in praying and seeking the Lord's direction to the service provider(s) best equipped to meet your specific need.

Other Tax/Legal Issues:

Does your church operate a preschool? An elementary school? A secondary school? A college? If you answered "yes" to any of these questions, then you are required to file a certificate of racial nondiscrimination (Form 5578) to the IRS each year by the 15th day of the fifth month following the end of your fiscal year. You may obtain Form 5578 and instructions for completing it by calling the IRS forms number (1-800-829-3676) or by downloading a copy from www.irs.gov.

  1. Church reporting requirements, IRS regulations, tax issues, the clergy housing allowance, contributions, designated funds, business expenses, and a variety of related legalities?
  2. How do I obtain an Employer Identification Number (EIN)?
  3. Compensation for your pastoral and support staff?
  4. How to prepare your tax returns? (If you are a licensed or ordained minister.)
  5. Your church's 501(c)(3) tax exempt status?
  6. Any issues involving the Internal Revenue Service?
  7. Any issues involving the state where your church is located?
  8. Insurance-related issues?

Question 1

Church reporting requirements, IRS regulations, tax issues, the clergy housing allowance, contributions, designated funds, business expenses, and a variety of related legalities?

A

You may wish to invest in the Church & Clergy Tax Guide. This valuable resource tool is available for $39.95 (price subject to change without notice) by visiting yourchurchresources.com or calling 1-800-222-1840 between 8 a.m. and 4:30 p.m. eastern time. Edited and updated annually by an attorney who is also a certified public accountant, the Church & Clergy Tax Guide is a comprehensive, authoritative source for answers to your questions. The book includes dozens of helpful, easily understood examples; comprehensive illustrations with forms; tables and case studies. 700+ pages. (back to top)

Question 2

How do I obtain an Employer Identification Number (EIN)?

A

Information on applying for an Employwer Identification Number (EIN) is available here: www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online (back to top)

Question 3

Compensation for your pastoral and support staff?

A

You may wish to consult Church Law & Tax Report's Compensation Handbook for Church Staff. Currently selling for $34.95 (price subject to change without notice), this publication provides salary and benefit information on various different positions - based on the responses of thousands of survey participants across the country. The handbook provides breakdowns by church size, budget, setting, education, years-of-service, and more. Also included is Information on base salary, average salary increase, housing allowance, retirement funds, health and life insurance coverage, paid vacation, and much more. Visit yourchurchresources.com or call 1-800-222-1840 between 8 a.m. and 4:30 p.m. eastern time to place an order. (back to top)

Question 4

How to prepare your tax returns? (If you are a licensed or ordained minister.)

A

You may wish to contact James Rickard's staff with Stewardship Services Foundation. With over 90 years of collective experience and expertise in clergy tax preparation, SSF may provide just the information or assistance you need. The staff may be reached at (661) 362-2TAX or visit their website - www.ssfoundation.net. (back to top)

Question 5

Your church's 501(c)(3) tax exempt status?

A

If your church is one of CBAmerica's affiliated churches, contact Mr. Stan Rieb, Executive Assistant, at 1-888-366-3010 for documentation of your exempt status under CBA's group exemption letter. (back to top)

Question 6

Any issues involving the Internal Revenue Service?

A

Contact the IRS at any of the following numbers as appropriate:
For general questions: 800-829-1040
For business and specialty tax questions: 800-829-4933
For "exempt organization" questions: 877-829-5500
Or visit the IRS' website - www.irs.gov - for forms and publications; filing requirements; published guidance; frequently asked questions; and much more. (back to top)

Question 7

Any issues involving the state where your church is located?

A

A good place to start is often the corporation division of your state government. Following are phone numbers and website addresses for our CB Northwest churches. If your church is located in Alaska, call (907) 465-2550 or visit www.corporations.alaska.gov.
If your church is located in Idaho, call (800) 972-7660 or visit www.sos.idaho.gov/corp.
If your church is located in Oregon, call (503) 986-2200 or visit www.filinginoregon.com.
If your church is located in Washington, call (360) 725-0377 or visit www.access.wa.gov.
(back to top)

Question 8

Insurance-related issues?

A

If your question has to do with medical, dental, vision, life, or long−term disability insurance and you are seeking the services of a professional insurance broker dealing with these areas of coverage, you may wish to contact Jane Berg at Benefits Consulting NW, 1-877-365-8738, or visit their website - www.benefitsconsultingnw.com.

If your question has to do with property, vehicle, or liability insurance, you may wish to contact Jim Reed at James Reed and Associates Insurance − 888-284-5320. (back to top)