Studies & Actions
of the General Assembly of
The Presbyterian Church in America
[11th General Assembly (1983), 11-30, III, 32, p. 82.]
TAX GROUP EXEMPTION
Personal Resolution 3A:
Whereas, the Book of Church Order makes provision for the incorporation
only of particular churches (BCO 25); and
Whereas, the Bylaws of the Presbyterian Church in America provide
that the PCA shall exist as a corporation; and
Whereas, the General Assembly of the PCA did apply for and receive
recognition from the Internal Revenue Service as a 501(c)(3) tax exempt
corporation; and
Whereas, the Internal Revenue Code provides that a 501(c)(3) corporation
which exists as a "central organization" may obtain a group exemption
covering all of the "subordinates ... affiliated with the central organization"
(IRS Publication 557, pages 4, 5; see also IRS Packages 1023 and 1024);
and
Whereas, the General Assembly, in making application for a determination
of exemption did not include the presbyteries, churches, or ministers
of the PCA that they might receive the benefits of a group exemption;
and
Whereas, the absence of such a group exemption may jeopardize the
validity of contributions made to the presbyteries and churches of the
PCA; and
Whereas, the absence of such a group exemption has resulted in
difficulty, especially with regards to ministers who are members of Grace
Presbytery, for ministers who were recently ordained to obtain exemption
from self-employment taxes,, i.e., social security taxes, under the provisions
of section 1402(e) of the Interna: Revenue Code - "conscientious opposition...
to accepting (for service performed as a minister...) public insurance"
(Form 4361); and
Whereas, BCO 11-4 recognizes that the courts of the PCA "are not
separate and independent," that the courts, including the Presbyteries
and the Genera Assembly, "have a mutual relation," and that the General
Assembly is the cow which has been given the responsibility "to exercise
jurisdiction ... over suc matters as concern the whole church;" and
Whereas, the General Assembly is therefore the proper court to
secure such a tax exempt status applicable to the whole church;
Therefore, be it resolved that the Eleventh General Assembly direct
the Committee on Administration to file such information as is necessary
to obtain a group exemption for the PCA.
1984, Appendix C, II, N, p. 228
N. Group Exemption
The Eleventh General Assembly directed the Committee on Administration
(1) to file information necessary to obtain a group tax exemption for
the PCA: The committee wishes to inform the General Assembly that COA
has complied with the directive to apply to the IRS for recognition in
order to be exempt under Section 501(c)(3) of the Code.
In complying with this General Assembly directive, COA informed the IRS
in its letter of application that PCA churches and presbyteries are already
exempt without applying for IRS recognition and that application was made
in order to facilitate communications with the tax service. |