Are churches required to apply for exemption from federal income taxes?
Churches that meet the requirements of of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS. They are automatically classified as tax-exempt. Although there is no requirement for churches to do so, many seek formal recognition of tax-exempt status from the IRS because such recognition assures church leaders, members and contributors that the church is formerly recognized as exempt and qualifies for various grants and related tax benefits. For example, large contributors donating big endowments and major corporations prefer giving to a church that has been formerly recognized by the IRS as tax exempt to ensure their contributions are tax-deductible.
