Churches and other religious organizations do not need to follow the same tax rules as traditional businesses. A church is considered tax-exempt if it receives tax-deductible contributions as well as meets several other requirements.
- Operations cannot be illegal
- Operations and activities cannot influence legislation
- Operations must be exclusively for religious, scientific, charitable or education purposes
- Operations cannot net income that benefits a stakeholder or individual
In addition, the organization cannot participate in political campaigns.
A Federal Tax ID Number Is Still Important
Even if the religious organization is not required to apply for a church tax ID number, it is still a good idea to do so. When a church has a federal tax identification number, its leaders can perform many tasks it wouldn’t otherwise be able to do. This includes hiring employees to help with everyday operations, securing lines of credit or opening church-related bank accounts to maintain financial organization and protecting the leaders’ personal assets should the church find itself in financial trouble. The identification number will also make it easier for leaders to file an unexpected income tax return should they ever find the need to.
Applying for a Federal Tax Identification Number
Despite the misconceptions, applying for a SC tax ID number does not take a long time nor is it very complicated. In fact, with the help of IRS-EIN-Tax-ID, you can apply for your tax identification number via the internet. Simply select the options that best meet the needs and description of your church, fill in the specified information, and submit the application. The entire process only takes a few minutes, and you will likely receive your nine-digit number via email in a matter of just a few business days.
Are you ready to begin the application process, or do you need more information? Get the help you need by contacting IRS EIN Tax ID Filing Service.