California-Pacific Annual Conference of the United Methodist Church for Tuesday, 11 February 2014

California-Pacific Annual Conference of the United Methodist Church for Tuesday, 11 February 2014
IRS Requirement
Dear Church Leaders and Leaders of Affiliated Non-Profit Organizations,
On January 1, 2014, the Internal Revenue Service began requiring all organizations to submit Form 8822-B, "Change of Address or Responsible Party--Business,"  with updated address and responsible party contact information previously filled in to Form SS-4. 
If a church or “affiliated organizations” including the District Unions, Foundation and Wesley Foundation has not updated its address and responsible contact information with the IRS in the recent past, Form 8822-B must be completed by March 1, 2014. The General Council on Finance and Administration recommends that every organization with an EIN (including churches) must comply with the new requirement to update the name of its Responsible Party.
Download: FORM 8822-B
INSTRUCTIONS (for 8822-B)
The process is simple.  Download, print and complete the following:
Check the box at the top of the form for "tax-exempt organizations."
Check box #1. If your church has also changed locations or business addresses, you will also need to check box #3. For most, only #1 will be necessary.
Complete box#4a with the full legal name of your church/organization. Complete box #4b with your current EIN.
If you have changed mailing addresses without notifying the IRS, also completely boxes 5 & 6. If not, simply proceed to box #8a.
Name the previous responsible party. This is usually the previous treasurer, financial secretary or pastor. If you receive mail from the IRS, the "c/o" name will be the responsible party. Box #9a does ask for that person's social security number.
Completely Box #8b and 9b with the new responsible party and his or her social security number.
Have an authorized person sign and list a phone number for the organization. An authorized person may be the current treasurer, church council chair, finance chair or trustee chair.
Download: FORM 8822-B
FREQUENTLY ASKED QUESTIONS
1) WHO SHOULD BE THE NEW RESPONSIBLE PARTY? Our General Council on Finance & Administration recommends that the treasurers of local churches serve as the responsible party. While other leaders may share some responsibilities of leadership, the treasurer is typically the best person to receive IRS communication. Other candidates might be the chair of Finance, the Financial Secretary or a local church Business Administrator. We do not recommend that pastors serve in this role, especially given our itinerant system.
2) WILL SERVING AS THE RESPONSIBLE PARTY OPEN A PERSON TO TAX LIABILITIES OR PENALTIES? No. The responsible party is simply the person designated to receive communications and contact the IRS on behalf of the organization. Except in instances of fraud directly committed by that individual, the responsible party will not be penalized for acting on behalf of the organization. Further, most liabilities incurred by officers or other leaders are covered by the local church's insurance policy.
3) ARE THERE ANY PENALTIES FOR NON-COMPLIANCE: There are no direct penalties for failure to comply; but if you do not provide the name and address of the Responsible Party, you may not receive a notice of tax deficiency or notice of demand for tax. Despite not receiving the notice, penalties and interest will accrue on any tax deficiencies. (One way in which a tax deficiency may arise is if someone embezzles money from a church by not paying the required payroll taxes. Thus completing Form 8822-B would not only help ensure that the notice of a tax deficiency is received, the notice itself should be a reminder that further investigation is needed to determine the cause.)
Download: FORM 8822-B
For assistance with Form 8822-B or any questions, please contact Joyce Zirkle (626) 568-7306 // jzirkle@cal-pac.org
Peace,
Archana Carey
Treasurer/Executive Director, Finance & Facilities
Download Form 8822-B
Our mailing address is:
The California-Pacific Annual Conference of the United Methodist Church
110 S Euclid Ave.
Pasadena, CA 91101
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