Dear Pastors and Church Leaders,
The IRS recently issued new rules for group tax exemption rulings. These changes don’t affect day-to-day operations or tax-exempt status for United Methodist churches, but they do require GCFA to send an annual notice to all UMC churches about tax-exempt status. Read the full notice below. If you have any questions, please give me a call!
Robert Yamamoto
treasurer@calpacumc.org
626-568-7306
A tax message from GCFA:
The IRS recently issued new rules for group tax exemption rulings—the first major update in more than four decades. These changes don’t affect day-to-day operations or tax-exempt status for United Methodist churches, but they do require the General Council on Finance and Administration of the United Methodist Church to send this annual notice to all UMC churches with the included link to an IRS document that explains our tax-exempt status.
Churches (and other core UMC entities like conferences and general agencies) that need to prove their tax-exempt status can still rely on letters from GCFA documenting their inclusion in the UMC group ruling. They can request a new letter at umgroupruling.org. GCFA will continue to provide information there and in annual messages like this one.
Churches do not have to do anything new. Some church-related organizations (such as foundations, camps, and other affiliated entities) that are included in the group ruling will be contacted directly by GCFA. If the related organization files a Form 990, 990 EZ, or 990-N, GCFA will need to collect additional information every year to follow the updated rules. GCFA is contacting those groups with more information.