Tax Compliance Support

IRS Forms:

While most churches don't file Form 990, they may need to file other forms depending on their income and the state in which they operate.

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• Form 1099-NEC: Churches are generally required to issue a Form 1099-NEC to guest speakers if the total compensation paid to the speaker for services rendered during the year is $600 or more. This applies to guest speakers who are not considered employees of the church, but rather independent contractors.​

  • Threshold: The reporting threshold for Form 1099-NEC is $600 or more in non-employee compensation paid during a calendar year.

  • Independent Contractor Status: Guest speakers are typically classified as independent contractors rather than employees, meaning they are responsible for their own taxes, according to the IRS.

  • Form W-9: Churches should require guest speakers to complete a Form W-9 to gather the necessary information (name, address, and taxpayer identification number) for reporting purposes.

  • Penalties for Non-Compliance: Failure to issue Form 1099-NEC when required can result in penalties from the IRS, ranging from $100 to $1,500,000.

​In essence, if a church pays a guest speaker $600 or more in a year for their services, they are required to issue a 1099-NEC form to both the speaker and the IRS.

RAMCAT LLC will prepare the necessary IRS forms (e.g., 1099-NEC for independent contractors). Note: We will not provide tax advice; instead, we will ensure that records are ready for tax preparers.

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Payroll Taxes:

Churches are responsible for withholding and paying employment taxes for their employees.

Unrelated Business Income (UBI):

If a church engages in business activities unrelated to its religious purpose, it may need to report and pay taxes on the income. 

Preparation of necessary forms (e.g., 1099-MISC for independent contractors). Note: We will not provide tax advice, but rather ensure records are ready for tax preparers.