EFCA Tax Determination Letter
This letter recognizes the EFCA’s exemption from federal income tax as a 501(c)(3) organization and verifies the EFCA’s tax ID number. EFCA churches may choose to fall under the EFCA’s exempt status to save both time and financial resources. To find out more about how to come under the EFCA’s tax exempt status, contact us at adminfin@efca.org or (800) 745-2202
EFCA’s IRS letter
Note: IRS Advisory Committee on Tax Exempt and Government Entities ("ACT") addresses group exemption rulings
The IRS Advisory Committee on Tax Exempt and Government Entities ("ACT") issued a report in 2011 that addresses a number of tax compliance issues, including group exemption rulings. The report caught the attention of many church leaders, since thousands of churches have obtained recognition of tax-exempt status by being included in the group exemption ruling of a parent denomination. Unfortunately, the report has caused needless concern, in part because of false claims of a few seminar leaders that the IRS is going to "revoke the group exemptions of churches by the end of the year." The good news is that the IRS is not going to revoke group exemptions. To the contrary, the ACT report recommends that the group exemption procedure be retained. This significant development is explained fully in chapter 12, section A.4, of the 2012 Church & Clergy Tax Guide. —Church Law & Tax Report, Volume 25 - Number 1, January/February 2012 (ChurchLawAndTax.com)
Senior Editor Richard R. Hammar, JD., LL.M., CPA.
Published by Christianity Today International.
CLTReditor@ChristianityToday.com
