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1 <br /> performed by diocesan priests in the exercise of their ministry are not considered <br /> "employment" for FICA (Social Security) purposes,.' and FICA should not be <br /> withheld from their salaries . For Social Security purposes, diocesan priests are <br /> subject to self-employment tax ("SECA" ) on their salaries as well as on the value of <br /> meats and housing or housing allowances provided to them .r' Neither FICA nor <br /> income tax withholding is required on remuneration paid to religious institutes for <br /> members who are subject to vows of poverty and obedience and are employed by <br /> organizations included in the Official Catholic Direetory.4' <br /> 7. Form 990, All organizations included in the OCD must file Form 990, <br /> Return of Organization Exempt from income Tax, unless they are eligible for a <br /> mandatory or discretionary exception . There is no automatic exemption from the <br /> Form 990 riling requirement simply because an organization is listed in the <br /> OCD. Organizations required to file Form 990 must do so by the 15th day of the fifth <br /> month after the close of their fiscal year'll Among the organizations not required to <br /> file Form 990 under section 6033 of the Code are: churches ; integrated auxiliaries of <br /> churches'; the exclusively religious activities of religious orders; schools below <br /> college level affiliated with a church or operated by a religious order; organizations <br /> vdth gross receipts normally not in excess of $25,000;2' and certain church-affiliated <br /> I. R. C. § 3121 (b)(8)(A). <br /> s LR. 0 § 1402(a)(8). See also, Compensation of Priests, at <br /> http llwww.usccb. orglblshopsldfifdualtax htm. <br /> Rev. Rul. 77490, 1977-2 C. B. 26. See also, ComDensatlon of Religious at <br /> h ttp.11www. usccb. orglbisho psldfrlreligiouscomp. h tm. <br /> ' The penalty for failure to rile the Form 990 is $20 for each day the failure <br /> continues, up to a maximum of $10, 000 or 5 percent of the organization 's gross <br /> receilits, whichever is less. However, organizations with annual gross receipts in <br /> excess of $ 1 miiilon are subject to penalties of $ 100 per day, up to a maximum of <br /> $50, 000, LR. C: § ss52(c)(1)(A). <br /> LR. C. § 6033(a)(2){A)(i); Treas. Reg. § 9 . 5033-2{h). TO qualify as an integrated <br /> auxiliary of a church, an organization must be described in section 501 (c)(3), <br /> qualify as other than a private foundation, be affiliated with a church, and qualify <br /> as internally supported. An organization will be considered internally supported <br /> unle,m it both: <br /> (1) Offers admissions, goods, services, or facilities for sale, other <br /> than on an incidental basis, to they general public (except goods, <br /> services, or facilities sold at a nominal charge or substantially <br /> below cost), and <br /> (2) normally receives more than 50 percent of its support from a <br /> combination of governmental sources; public solicitation of <br /> contributions (such as through a community fund drive); and <br /> receipts from the sale of admissions, goods, performance of <br /> services, or furnishing of facilities in activities that are not <br /> unrelated trades or businesses. <br /> Rev. Proc, 83-23, 1983- 1 C, Br 687. <br /> 3 <br />