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IRS Double-Talk About Incorporating Your Church

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IRS Double-Talk About Incorporating Your Church

 
Look at what the IRS (U.S. Internal Revenue Service) says about incorporating churches and see how misleading there wording is. Notice the use of the word “qualify” (highlighted in bold print in the text box below), as if the IRS is giving you a gift (i.e. tax exemption) when in reality they are putting you under legal obligation to them. Or to put it another way, they are legally enslaving you under the guise of doing you a favor.
 

Excerpt From Official IRS Document

(https://www.irs.gov/pub/irs-pdf/p1828.pdf)

 
Tax-Exempt Status
 
Churches and religious organizations, like many other charitable organizations, qualify for exemption from federal income tax under IRC Section 501(c)(3) and are generally eligible to receive tax-deductible contributions. To qualify for tax-exempt status, the organization must meet the following requirements (covered in greater detail throughout this publication):

  • the organization must be organized and operated exclusively for religious,
    educational, scientific or other charitable purposes;
  • net earnings may not inure to the benefit of any private individual or shareholder;
  • no substantial part of its activity may be attempting to influence legislation;
  • the organization may not intervene in political campaigns; and
  • the organization’s purposes and activities may not be illegal or violate
    fundamental public policy.

 
What they are really saying is NOT this:
 
To qualify for tax-exempt status, the organization must meet the following requirements (covered in greater detail throughout this publication):
 
but rather this:
 
If you become 501c3 incorporated, THEN YOU WILL BE LEGALLY OBLIGATED TO COMPLY WITH OUR REQUIREMENTS which include these stipulations, among others, including any new stipulations the IRS comes up with at a later date:

  • the organization must be organized and operated exclusively for religious, educational, scientific or other charitable purposes;
  • net earnings may not inure to the benefit of any private individual or shareholder;
  • no substantial part of its activity may be attempting to influence legislation;
  • the organization may not intervene in political campaigns; and
  • the organization’s purposes and activities may not be illegal or violate
    fundamental public policy
    .

So if a church does NOT incorporate they will NOT be BOUND by the above list of IRS restrictions and yet they will still be tax exempt per the first amendment of the constitution – which for now – protects individual citizens and groups of citizens from government interference in religion.
 

Even the IRS says that CHURCHES ARE EXEMPT:

 
Believe it or not, even the IRS says in its very own tax code that churches are exempt from taxation and need not form a 501c3 corporation for such exemption.
 
Please note the section highlighted in RED text below.
 

Portion Of Official IRS Tax Code Addressing Church Tax Exemption

 

USC 26 § 508(c)(1)(a)

 

§508. Special rules with respect to section 501(c)(3) organizations

 

(A) NEW ORGANIZATIONS MUST NOTIFY SECRETARY THAT THEY ARE APPLYING FOR RECOGNITION OF SECTION 501(C)(3) STATUS

       Except as provided in subsection (c), an organization organized after October 9, 1969, shall not be treated as an organization described in section 501(c)(3)—
 
       (1) unless it has given notice to the Secretary in such manner as the Secretary may by regulations prescribe, that it is applying for recognition of such status, or
 
       (2) for any period before the giving of such notice, if such notice is given after the time prescribed by the Secretary by regulations for giving notice under this subsection.
 

(B) PRESUMPTION THAT ORGANIZATIONS ARE PRIVATE FOUNDATIONS

       Except as provided in subsection (c), any organization (including an organization in existence on October 9, 1969) which is described in section 501(c)(3) and which does not notify the Secretary, at such time and in such manner as the Secretary may by regulations prescribe, that it is not a private foundation shall be presumed to be a private foundation.
 

(C) EXCEPTIONS

       (1) MANDATORY EXCEPTIONS

       Subsections (a) and (b) shall not apply to —
       (A) churches, their integrated auxiliaries, and conventions or associations of churches, …

 

Any church that incorporates becomes a church that is operating as a government business

 
“There are profit-making businesses and there are non-profit businesses, but a business is a business in the eyes of [the] government. An incorporated church simply cannot deny the fact that it has requested permission of the State to operate as a business. Not only does it have its charter and articles of incorporation on file with the Secretary of State, but it is also required to list a President, Vice-President, Secretary, and Treasurer. None of these offices were instituted by Christ in His Church (Eph.4:11-12), because they exist to control the business dealings of a corporation, not the sacramental duties of the Body of Christ.” (source: http://ecclesia.org/truth/501-church.html).
 
So the bottom-line is that 501c3 incorporation of a church in America is unnecessary, unbiblical and something to be strongly avoided.
 

Related Material On Incorporating And Unincorporating A Church:


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Christ Died For The Ungodly

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The divine testimony concerning man is, that he is a sinner. God bears witness against him, not for him; and testifies that "there is none righteous, no, not one"; that there is "none that doeth good"; none "that understandeth"; none that even seeks after God, and, still more, none that loves Him (Psa. 14:1-3; Rom. 3:10-12). God speaks of man kindly, but severely; as one yearning over a lost child, yet as one who will make no terms with sin, and will "by no means clear the guilty." <continued>

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