Tax & Audit
- Audit Guide and List of Auditors
- Small Employer Health Care Tax Credit for 2011 Memo
- 2017 Clergy Tax Guide for 2016 Tax Returns
- 2017 Federal Reporting Requirements for Churches
- Department of the Treasury Internal Revenue Service form 8822-B and instructions for churches to use to update their Responsible Party
Canon 39 of the Diocesan Canons and Canon 7 of The Episcopal Church require an annual audit for all entities, including discretionary funds. Audit guidelines have been established by The Episcopal Church and are included in its publication "The Manual of Business Methods in Church Affairs".
For more information about Audit Guidelines, please view the Audit Guide for Churches.
SALES TAX EXEMPTION
The Diocese of Chicago and its entities are considered a 501(c)3 organization, a designation of not-for-profit status. Agencies held or housed by a Diocesan of Chicago church may need to apply for their own 501(c)3 designation. However, all entities of the Diocese may use the Diocesan Illinois Sales Tax exemption letter when visiting retail establishments.
Most purchases made by an entity of the Diocese of Chicago are exempt from sales tax. The sales tax exemption is appropriate for the purchase of consumable items that will be used at church or church functions and for the purchase of furniture and equipment that will be owned by the church and used for church purposes.
Sales tax cannot be reimbursed, even with receipts. For this reason, it is important to present the Diocesan Illinois sales tax exemption letter to all retail vendors.
SELF EMPLOYMENT TAX
The SE Tax rate is 7.65% (one-half of the total 15.3%).