Form 8822-B Requirement Includes Churches

IRS seeks contact information for tax-related communications.

Church Law and Tax

Form 8822-B Requirement Includes Churches

IRS seeks contact information for tax-related communications.

Any church that has employees, files employment tax returns, or has a bank or brokerage account, must have an ’employer identification number’ (EIN). This includes nearly every church in the United States.

In 2010, the IRS wanted to receive information about responsible parties for any employer in possession of an EIN to help ensure all tax-related correspondence was received by those employers. It began asking for the name and Social Security number of a responsible party through the Form SS-4 used to obtain an EIN.

By 2013 the IRS was becoming increasingly frustrated by its inability to communicate with responsible parties identified in employers’ SS-4 forms. This usually was due to the fact that the responsible party designated in an employer’s Form SS-4 was no longer serving in that capacity, due to death, relocation, or resignation. As a result, the IRS adopted an entirely new requirement that any employer with an EIN report changes in the identity of its responsible party to the IRS, using Form 8822-B. This new requirement was first announced on November 18, 2013, in the following notice in the IRS newsletter Employee Plans News:

Beginning January 1, 2014, any entity with an EIN, such as a plan sponsor, must report a change in the identity of their plan’s re-sponsible party on Form 8822-B, Change of Address or Responsible Party – Business, within 60 days of the change. If the change is made before 2014, and the sponsor has not previously reported the change, the sponsor should file Form 8822-B prior to March 1, 2014.

Confusion about this requirement soon followed, particularly among church leaders. Although no penalties were levied against any employer that didn’t meet the March 1, 2014, deadline or any employer that remains out of compliance, the IRS strongly urges all employers who have experienced a change in responsible parties to submit a Form 8822-B. A failure to do so may result in missed correspondence—correspondence that may contain warnings about missing paperwork, lingering taxes owed, or potential fines and penalties.

In the future, any change to a church’s responsible party now should be communicated to the IRS by filing a Form 8822-B within 60 days of the change.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.
Related Topics:

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

ajax-loader-largecaret-downcloseHamburger Menuicon_amazonApple PodcastsBio Iconicon_cards_grid_caretChild Abuse Reporting Laws by State IconChurchSalary Iconicon_facebookGoogle Podcastsicon_instagramLegal Library IconLegal Library Iconicon_linkedinLock IconMegaphone IconOnline Learning IconPodcast IconRecent Legal Developments IconRecommended Reading IconRSS IconSubmiticon_select-arrowSpotify IconAlaska State MapAlabama State MapArkansas State MapArizona State MapCalifornia State MapColorado State MapConnecticut State MapWashington DC State MapDelaware State MapFederal MapFlorida State MapGeorgia State MapHawaii State MapIowa State MapIdaho State MapIllinois State MapIndiana State MapKansas State MapKentucky State MapLouisiana State MapMassachusetts State MapMaryland State MapMaine State MapMichigan State MapMinnesota State MapMissouri State MapMississippi State MapMontana State MapMulti State MapNorth Carolina State MapNorth Dakota State MapNebraska State MapNew Hampshire State MapNew Jersey State MapNew Mexico IconNevada State MapNew York State MapOhio State MapOklahoma State MapOregon State MapPennsylvania State MapRhode Island State MapSouth Carolina State MapSouth Dakota State MapTennessee State MapTexas State MapUtah State MapVirginia State MapVermont State MapWashington State MapWisconsin State MapWest Virginia State MapWyoming State IconShopping Cart IconTax Calendar Iconicon_twitteryoutubepauseplay