Tax Exempt

(SC)

Our church was informed we had to pay taxes due to the IRS moving us from a 944 form to a 941 form without notification. How does this work?

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Churches are not Exempt from Payroll Taxes
by: Vickey

I am not sure what taxes you are talking about or what exactly is happening in your circumstance, but I want to emphasize here for everyone reading this post that you cannot file an IRS 944 Form (Employer’s Annual Federal Tax Return)...unless the IRS notifies you that you are eligible to file this form.

So even if your annual tax liability is less than $1000, you must file a quarterly 941 until you are notified by the IRS that you can file a 944.

If you were notified by the IRS to file a 944 and did not receive any written communication from the IRS stating differently, you will need to call the number listed on your notice and talk to an IRS representative or...best option is to consult a tax professional first.

One more quick point :-)

Your title says "Tax Exempt".

I just wanted to remind everyone that even though a church is exempt from paying income taxes...they are not exempt from filing and paying (for non-minister employees)...payroll taxes.

See this page for more information on payroll taxes

Same goes for an IRS Form 1099-MISC.

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