Church Tax Exemption Clarification

Summary

Churches with 508(c)(1)(A) status are automatically tax-exempt and not required to apply for 501(c)(3). If the Franchise Tax Board requests an IRS exemption letter, explain your status in a letter, include supporting documents like organizing documents and bylaws, and consider consulting a tax professional. To apply for 501(c)(3) status, complete IRS Form 1023 or 1023-EZ. For a private trust where the grantor and trustee are the same, bylaws should reflect this structure. Meeting minutes for financial matters should include agenda items like bank statement review and transaction reconciliation.

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I have *(c) (*) (A) status the franchise tax board is asking for a copy of the Internal Revenue Service exemption letter granting exemption under Internal Revenue Code (IRC) Section * (c) (*), (c) (*), (C) (*), (c) (*), (c) (*), or (c) (*).
*(c)(*)(A) status indicates a church or religious organization that is automatically tax-exempt. However, the Franchise Tax Board is requesting an IRS exemption letter under specific IRC sections. Churches are exempt from applying for *(c)(*) but may do so for formal recognition.
Would you like guidance on how to apply for *(c)(*) status?
yes
Great! To apply for *(c)(*) status, you'll need to complete IRS Form * or *-EZ. Here are the steps:
*. Determine Eligibility: Ensure your church meets *(c)(*) requirements.
*. Gather Documents: Prepare your organizing documents (e.g., Articles of Incorporation).
*. Complete Form *: Fill out the application thoroughly.
*. Submit to IRS: Send your application along with the required fee.
Would you like more detailed guidance on any of these steps?
I am already exempt so how do I respond to them
Case Rating: *
Since you already have a *(c)(*)(A) status and the Franchise Tax Board is requesting a specific IRS exemption letter, you may need to explain your situation to them. Here are a few steps to consider:
- Draft a letter explaining that your organization is a church with *(c)(*)(A) status, which is automatically tax-exempt.
- Include any supporting documents that demonstrate your organization’s status (e.g., organizing documents, bylaws).
- If necessary, consult with a tax professional for additional assistance.
Would you like more information on the content of the letter?
yes
Case Rating: *
To draft your letter to the Franchise Tax Board, you can include the following information:
- Introduction: State your organization's name and that you have a *(c)(*)(A) status, which grants automatic tax exemption.
- Explanation: Explain that churches with *(c)(*)(A) status are not required to apply for *(c)(*).
- Supporting Documents: Attach any relevant documents, such as your organizing documents and bylaws, to support your claim.
Would you like assistance with drafting a sample letter?
yes
Case Rating: *
To help you draft a sample letter to the Franchise Tax Board, here's a template you can use:
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[Your Church's Letterhead]
[Date]
Franchise Tax Board
[Address]
Dear Sir/Madam,
Re: [Your Church's Name] - *(c)(*)(A) Status
I am writing on behalf of [Your Church's Name], which operates under the *(c)(*)(A) status, granting us automatic tax exemption as a church.
Introduction:
Our organization, [Your Church's Name], qualifies for automatic tax exemption as a church under the Internal Revenue Code Section *(c)(*)(A).
Explanation:
Under IRS guidelines, churches with *(c)(*)(A) status are not required to apply for *(c)(*) tax-exempt status. Therefore, we do not possess an IRS exemption letter under IRC Section *(c)(*), (c)(*), (c)(*), (c)(*), (c)(*), or (c)(*).
Supporting Documents:
To support our claim, we are including the following documents:
- Organizing Documents
- Bylaws
We trust this clarifies our tax-exempt status. Please feel free to contact us if you need further information or documentation.
Sincerely,
[Your Name]
[Your Title]
[Contact Information]
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Would you like any further assistance with this matter?
give me a sample letter of Organizing Documents
Case Rating: *
Sure, here's a sample letter to provide your organizing documents:
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[Your Church's Letterhead]
[Date]
Franchise Tax Board
[Address]
Dear Sir/Madam,
Re: [Your Church's Name] - *(c)(*)(A) Status
I am writing on behalf of [Your Church's Name], which operates under the *(c)(*)(A) status, granting us automatic tax exemption as a church.
Introduction:
Our organization, [Your Church's Name], qualifies for automatic tax exemption as a church under the Internal Revenue Code Section *(c)(*)(A).
Explanation:
Under IRS guidelines, churches with *(c)(*)(A) status are not required to apply for *(c)(*) tax-exempt status. Therefore, we do not possess an IRS exemption letter under IRC Section *(c)(*), (c)(*), (c)(*), (c)(*), (c)(*), or (c)(*).
Supporting Documents:
To support our claim, we are including the following documents:
- Organizing Documents (e.g., Articles of Incorporation)
- Bylaws
We trust this clarifies our tax-exempt status. Please feel free to contact us if you need further information or documentation.
Sincerely,
[Your Name]
[Your Title]
[Contact Information]
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Would you need any additional information or further assistance?
can you write me bylaws for a *(c)(*)(A) of private trust created by the common law right of contract
Case Rating: *
Sure, here is a concise version of bylaws for a *(c)(*)(A) private trust created by the common law right of contract:
Bylaws for [Your Church's Name]
Article I: Name and Purpose
- Name: [Your Church's Name]
- Purpose: To operate exclusively for religious, charitable, and educational purposes within the meaning of Section *(c)(*)(A) of the Internal Revenue Code.
Article II: Governance
- Board of Trustees: The governing body shall be the Board of Trustees, consisting of at least three (*) members.
- Election and Terms: Trustees shall be elected by majority vote and serve for a term of three (*) years.
Article III: Meetings
- Annual Meeting: An annual meeting of the Board shall be held each year.
- Special Meetings: Special meetings may be called by the President or any two Trustees with ten (*) days notice.