Most Churches Miss This One Legal Filing Every Year: Are You At Risk?

The Quiet Danger to Your Church's Legal Status

Every year, hundreds of churches put their tax-exempt status and legal compliance at jeopardy without knowing it by skipping an important filing obligation. Many churches focus on their mission and outreach, but the sad truth is that missing this one annual legal filing can lead to huge fines, financial problems, and even the loss of nonprofit status in the worst circumstances.

Church Law and Strategy, run by experienced church lawyers and 501(c)(3) compliance professionals, has helped many ministries protect their work by making sure these important files are never missed. This article explains what this important file is, why it matters, and how to make sure your church is always in good standing.

The Most Important Annual Filing That Most Churches Forget

The form in question is the IRS Form 990 (or one of its variations). Most tax-exempt groups, such as churches and religious nonprofits, must file this form every year.

What is the importance of Form 990?

• It makes your church's finances and operations clear to the IRS and the public.
• It helps you keep your 501(c)(3) tax-exempt status.
• It makes funders, members of the church, and government officials trust you.

Common Misunderstandings

A lot of churches think they don't have to file. Some smaller churches don't have to file, but most churches and their ministries do.

Churches think that not filling out Form 990 is okay; however, this isn't true. If you don't file for three years in a row, you automatically lose your tax-exempt status.

What Happens If You Don't File

Tax-Exempt Status Automatically Taken Away

The IRS will immediately take away your tax-exempt status if your church doesn't file the right Form 990 (or 990-EZ, or 990-N e-Postcard) for three years in a row.

Because of this revocation, your church may have to pay income tax and lose the trust of its donors.

Fines and Back Taxes

Penalties can be very high, especially if you don't file for more than one year.

Churches may have to pay back taxes going back to the date their tax-exempt status was taken away.

Reputation Hurt

If your church loses its tax-exempt status or has to pay fines, it could hurt its ability to raise money and its reputation.

Which Churches Have to File?

Basic Rules

Churches that make less than $50,000 a year may be able to file the Form 990-N (e-Postcard).

Form 990-EZ must be filed by churches that make between $50,000 and $200,000.

Churches that make more than $200,000 must fill out the entire Form 990.

Exceptions

Churches that meet tight standards may not have to file, but they must keep records that show they are eligible.

Many ministries and groups that are part of a church have their own filing rules.

How to Make Sure Your Church Never Misses This Filing

Set Up Clear Processes for Following the Rules

Give a reliable person or team the job of keeping track of filing deadlines.

Set up calendars and reminders that go off on their own.

Use Professional Help

Get help with your church's 501(c)(3) compliance by hiring Church Law and Strategy's church compliance attorney services to check your filings and walk you through the process.

Hire experienced accountants who know how to file taxes for nonprofits.

Use Tech Tools

A lot of NGOs use special software or online tools to file Form 990 electronically.

The Proven Approach of Church Law and Strategy

We help churches:

• Figure out what their exact filing duties are depending on company size and structure.
• Prepare and file Form 990 returns that are correct and on schedule.
• Regular audits and training will help you stay in compliance.
• Stay away from mistakes that could get you kicked out or fined.

Church Law and Strategy has been in business for decades and will make sure your church stays lawful so you may focus on your work without worry.

Don't Let This Legal Filing Go Between the Cracks, In Conclusion

If you don't file your Form 990 every year, you might put everything your church stands for at risk. Don't be one of the numerous people who have to pay fines or lose their licenses because they didn't fill out the right forms.

Church Law and Strategy's full range of compliance services keep your church safe from these threats, so your mission may go on without a hitch.

Links Inside

• Church 501(c)(3) Compliance Attorney
• Church Legal Audit and Compliance Report
• Church Governance Attorney

Links to Other Sites

• IRS Form 990 Information: https://www.irs.gov/charities-non-profits/form-990-series-forms-and-instructions
• IRS Charitable Organization FAQs: https://www.irs.gov/charities-non-profits/charitable-organizations/frequently-asked-questions-about-charitable-organizations
• GuideStar Nonprofit Resources: https://www.guidestar.org/