Do Refunds Require a Form 1099?

(California)

Refunding Donations

A parish has a restricted building fund and the parish has now decided not to move forward with the construction. They are going to ask the donors if they will agree to redirect the funds. But, if they ask for a refund, and the original donation was over $600, do we need to issue a 1099?

[Vickey's Reply}

No, but there could be tax consequences that your donors should know about. See this article regarding Refunds of Charitable Contributions

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:

What’s this?

Facebook

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

Click on the HTML link code below.
Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.