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Annual group rulings clarify important tax consequences for Catholic institutions listed <br /> in the OCD , and should ' be retained for ready reference . Rulings from earlier years are <br /> important to establish the tax consequences of transactions that occurred during those years . <br /> � 4 <br /> t <br /> Responsibilities under Group Ruling Diocesan officials who compile OCD <br /> information for transmittal to the OCD publisher are responsible for the accuracy of such <br /> information. This means that they must ensure that only qualified organizations are listed , that <br /> organizations that cease to qualify are deleted promptly, and that qualified , newly-created <br /> organizations are listed as soon as possible . The current legal and procedural requirements <br /> for inclusion in the Group Ruling and OCD, as well as the application form , are contained in <br /> the OGC Memo dated December 31 , 1999 . If you need a copy of this document, please <br /> contact OGC . <br /> EXPLANATION <br /> 1 . _Exemption from .Federal Income Tax . The latest ruling reaffirms :the <br /> exemption from federal income tax under section 501 (c)(3) of the Code of "the agencies and <br /> instrumentalities and educational , charitable, and religious institutions operated., supervised <br /> or controlled by or in connection with the Roman Catholic Church in the United States, its <br /> .territories or possessions appearing in the Official Catholic Directory for 2002" (with the <br /> exception of organizations designated in the OCD with an asterisk and foreign organizations). <br /> 2 . Federal Excise Taxes. Inclusion in the Group Ruling has no effect on an <br /> organization 's liability for federal excise taxes. Exemption from these taxes is very limited . <br /> Please refer to your attorney any questions you may have about excise taxes. <br /> 3. State/Local Taxes . Inclusion in the Group Ruling does not automatically <br /> establish an organization 's exemption from state or local income, sales or property taxes . <br /> Typically, s eparate a xemptions m ust b e o btained f rom t he a ppropriate s tate o r I ocal t ax <br /> authorities in order to qualify for any applicable . exemptions. Please refer to your attorney any <br /> questions you may have about state or local tax exemptions . <br /> 4. Deductibility of Contributions . The Group Ruling assures donors that <br /> contributions to the institutions listed in the 2002 OCD and covered by the Group Ruling are <br /> deductible for federal income, gift, and estate tax purposes . (See OGC Memo dated <br /> December 21 , 1993 concerning substantiation and disclosure requirements applicable to <br /> contributions over $250 and quid pro quo contributions over $75 . ) <br /> 5 . UnemploymentTax. The Group Ruling establishes exemption from federal <br /> unemployment tax only. Individual states may impose unemployment tax on organizations <br /> included in the Group Ruling , even though they are exempt from the federal tax. Please refer <br /> to your attorney any questions you may have about state unemployment tax. <br /> 6. Social Security Tax. All section 501 (c)(3) organizations , including churches , <br /> are required to pay taxes under the Federal Insurance Contributions Act (FICA) for each <br /> -2- <br />