Form 990: Does Your Church Need to File This IRS Form?

A comprehensive guide on whether churches must file Form 990, including exemption criteria and legislative updates.

Last Reviewed: January 2, 2025

Are churches required to file Form 990 with the federal government? Here’s a detailed guide to help churches understand their filing obligations.

Key Takeaways:

  • Churches and certain religious organizations are exempt from filing Form 990.
  • Specific criteria define which organizations qualify for the exemption.
  • Proposed legislative changes could alter filing requirements for churches.

Churches are generally not required to file Form 990 with the IRS. This exemption is granted under Section 6033 of the Internal Revenue Code, which outlines specific criteria for exempt organizations.

Here’s what church leaders need to know.

Who Is Exempt from Filing Form 990?

Section 6033 specifies organizations exempt from filing Form 990. These include:

  • Churches, conventions, or associations of churches, and interchurch organizations of local church units.
  • Integrated auxiliaries of a church, such as men’s or women’s organizations, religious schools, mission societies, or youth groups.
  • Schools below the college level affiliated with a church or religious order.
  • Mission societies affiliated with churches, if over half of their activities target foreign countries.
  • Exclusively religious activities or religious orders.
  • Religious or apostolic organizations described in Section 501(d) of the Code.
  • Exempt organizations with annual gross receipts typically below $25,000.

What Is Form 990?

Form 990 is an annual return required for most tax-exempt organizations. It includes 89 questions covering finances, services, and administration. While this form ensures transparency and accountability, many religious organizations are exempt from filing due to their unique status.

Legislative Developments to Watch

Efforts are ongoing in Washington to require all religious organizations, including churches, to file an annual Form 990. If enacted, this could impact reporting requirements significantly. Stay informed on legislative updates that could affect your church’s obligations.

Example: A small mission society that conducts over half its activities abroad and earns less than $25,000 annually qualifies for the exemption.

Practical Steps for Compliance

  • Confirm your organization’s exemption status under Section 6033.
  • Stay updated on potential legislative changes affecting Form 990 filing requirements.
  • Consult a tax advisor or legal professional for guidance tailored to your church.

FAQs About Form 990

  • Are all churches exempt from filing Form 990? Yes, under Section 6033, most churches and related organizations are exempt.
  • What happens if filing requirements change? Churches will need to adhere to new regulations. Stay informed of legislative updates.
  • Do small organizations qualify for exemption? Yes, organizations with annual gross receipts below $25,000 are generally exempt.
  • Why is Form 990 important? It ensures transparency and accountability for tax-exempt organizations, but churches are uniquely exempt.

To learn more about Form 990 and filing requirements, visit the IRS website or consult a legal expert specializing in nonprofit tax law.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.
ChatGP4o, Team Gloo Workspace
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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.

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