Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 3Religious Organizations

• 3.2 Churches
  • (b) Definition of Church

§ 3.2 Churches

(b) Definition of Church

p. 69. Add new paragraphs at end of subsection:

Upon examination, the IRS found that a nonprofit organization was not only not a church, but also did not meet the factors identifying a § 501(c)(3) tax-exempt organization as the IRS had originally determined from information provided when the organization sought recognition of tax-exemption. The questions on Form 1023 are listed below. It is important to note that they do not follow the 14-point test set forth in 1994 in the order listed on pages 66 and 67 and ask additional questions. In completing Form 1023 for a new “church,” and subsequent conduct of church activities, attention to the factors on the test is critical.¹

• 1. Provide a brief history of the development of the organization, including the reasons for its formation.

  The history of this organization is simply the coming together of a group of people for the purpose of worshipping God. The reason for its formation is to facilitate the sharing of this belief and form of worship with others.

• 2. Does the organization have a written creed or statement of faith? If “Yes,” attach a copy.

  The organization checked “yes” but there appears to be no written creed or statement of faith attached.

  Questions 3–5 are not listed in the private letter ruling.

• 6. Are the services open to the public? If “Yes,” describe how the organization publicizes its services and ...