Did You Know?
Ms. Pamela Breen
Administrator
Email Pam
January 2012
Happy New Year!
I hope 2012 will be an incredible year for you and your church!
Here are some reminders to get you started in the right direction and on time ...
Year End Checklist
Here are some things you will want to be on top of:
• W-4 Forms ...
ask your employees to review their W-4 to see if they need to revise
it. This year, you may even want to do it again in March if the federal
tax withholding reduction is not extended beyond February 28th. You can
find the current W-4 form at www.irs.gov.
• Receipts ...
remind your congregation to be sure that they have receipts or a
contribution report in hand before claiming contributions on their
taxes. IRS no longer will accept copies of checks or statements as a
confirmation of a contribution. A receipt or contribution report dated
after the taxes are filed will also not be allowed.
• Year end Contributions
... gifts must be received by the church or postmarked by December 31st
to be claimed in the 2011 tax year. Gifts dropped off at the church
(not mailed) on January 2nd or later (regardless of the date on the
check) cannot be credited in 2011.
• Housing Allowances ...
forms only need to be changed when there is an adjustment to be made in
the amount claimed. Most pastors will not be changing their housing
allowance this year. Do remember changes to a pastors housing allowance
must be approved by the board (or appropriate body in your church)
before it goes into effect. They cannot be effective retroactively. If
you or your pastor have questions about a change in the housing
allowance form this year please contact me.
• Employment Posters
... there are changes to the employment posters for 2012 so be sure you
have updated yours. You can get them for free by contacting the
individual entities but you can also order a full set for about $50.
Tax Deadline Timetable
It is that time again when we want to be on schedule with all of the
filings that need to happen over the next couple of months. Be sure to
get these deadlines on your list:
January 31, 2012
• W-2 and 1099 forms need to be in the mail
•
Contribution reports need to be in the mail to your donors. Send them
earlier if possible so you are not holding up a donor that would like
to file early.
February 15, 2012
• Welfare Exemption forms need to be filed
May 15, 2012
• IRS Form 990 ...IS NOT DUE FOR A CHURCH!
There
is a lot of news about filing the IRS Form 990 because IRS now requires
the majority of non profits to file. As you see or hear about this
requirement remember that churches are exempt. You can read more about
it on the IRS website www.irs.gov if you are interested. Look for it
under the section titled: B. Organizations Not Required To File Form
990 or 990-EZ
• Unrelated business taxes need to be reported
•
May 15 is the deadline to file Form 5578 - if you operate a private
school and if your church has a December 31 fiscal year end.
Churches
and other religious organizations that operate, supervise, or control a
private school must file a certificate of racial nondiscrimination
(Form 5578) each year with the IRS. The certificate is due by the 15th
day of the fifth month following the end of the organization's fiscal
year. This is May 15th of the following year for organizations that
operate on a calendar year basis. Here is a link to more information:
http://www.irs.gov/pub/irs-pdf/f5578.pdf
Various Deadlines
• IRS notifies you of your filing requirements for use/sales tax.
Statement of Information Filings
Although it is not a tax filing it is a good time to stop and check to see when you are required to file the Statement of Information. It is due every two years on the anniversary of the church’s incorporation. This is another filing you do not want to miss so be sure to get it on your calendar for the next filing. To determine when you paid it last, go to: http://www.sos.ca.gov/business/be/statements.htm, click on e-file, enter your church name and it will let you know when you last filed.
As always, please feel free to contact me, Pam Breen, if you have questions or if we can be of assistance at Pambreen@aol.com or 888-290-2229.