Per our payroll processor, our church was not created as a tax-exempt organization. How can we go about getting this changed? Is there anything in addition to Form 1023 that needs to be completed?
Churches, although they can receive 501(c)(3) exemption status from the IRS, are not required to. They are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS by filing Form 1023.
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Answered by: Krista M. Gardner, CPA, is a principal, government/not-for-profit, with Stambaugh Ness PC in York, Pa.