Beginning January 1, 2014, churches must file Form 8822-B to report any of the following changes: -business mailing address -your business location -identity of your responsible party* The purpose of this form is to streamline communication and update contact information in case the IRS needs to contact your church. When filing the 8822-B form, churches should check the box at the top of the form indicating that they are a tax-exempt organization. Form 8822-B must be filed within 60 days of the change. If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change.Complete Form 8822-B as appropriate; use applicable boxes 8a through 9b to report any changes to the identity of your responsible party. Form 8822-B can be found: http://www.irs.gov/pub/irs-pdf/f8822b.pdf *Responsible party defined by the IRS. “responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. Typically for a church, the “responsibly party” would be a church treasuer, church business manager, church board finance chair or lead pastor. This is not an all-inclusive list, but it should provide an idea of the roles and responsibilities of who should be named as a “responsible party” in the eyes of the IRS. The “responsible party” is the contact person for the IRS. Any IRS correspondence will be sent to their attention. Under typical circumstances(not including fraud), the “responsible party” is not liable for liabilities or penalties issued by the IRS. Source: Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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