508 Non-Profit Religious Organization
No legal advice is provided. The intent in setting up nonprofit corporations is to assist humanitarian & religious causes and not to avoid taxes. Within 5 weeks or so, Articles of Incorporation, EIN letter and Organizational Meeting Minutes are facilitated, which comprise all of the documents that are required to establish a corporate bank account; identified only by its name and EIN.
Whereas 501C3 ‘churches’ are under the thumb of the State and IRS, 508 Non-Profit Religious Organizations are completely outside of any higher jurisdiction or authority.
501(c)(3)s are created by the government, owe their servitude to the government, and must keep certain records and submit reports to the IRS. Their tax immune status is obtained, not naturally inherent. They are corporations which are organized for benevolent purposes; not churches; and, therefore are required to file a tax return.
Church and State are separate realms. A 508 is the proper designation for a church. It’s tax immune status is naturally inherent, therefore, it is not required to file a tax return
Exception vs. Exemption
The difference between a 508(C)(1)(a) Exception and a 501(C)(3) Exemption is rather startling.
EXEMPT. To release, discharge, waive, relieve from liability. To relieve, excuse, or set free from a duty or service imposed upon the general class to which the individual exempted belongs; as to exempt from military service. To relieve certain classes of property from liability to sale on execution, or from taxation, or from bankruptcy or attachment.
EXCEPTION. Act of excepting or excluding from a number designated or from a description; that which is excepted or separated from others in a general rule or description; a person, thing, or case specified as distinct or not included; an act of excepting, omitting from mention or leaving out of consideration. Express exclusion of something from operation of contract or deed. An “exception” operates to take something out of thing granted which would otherwise pass or be included. Christman v. Emineth, N.D., 212 N.W.2d 543, 552.
And further: An exception in a statute is a clause designed to reserve or exempt some individuals from the general class of persons or things to which the language of the act in general attaches. The office of an “exception” in a statute is to except something from the operative effect of a statute or to qualify or restrain the generality of the substantive enactment to which it is attached, and it is not necessarily limited to the section of the statute immediately following or preceding. Gatliff Coal Co. v. Cox, C.C.A. Ky., 142 F.2d 876, 882 [both of the above definitions come from Black’s Fifth Edition]
In other words, the rules are bent when dealing with an exemption, but the rules simply DO NOT APPLY to someone who was never placed on the list, i.e., – excepted. The inclusion of the word “mandatory” in section 508(C)(1)(a) adds a little weight, and it sounds like weight of law. Because this is the U.S. Code, not CFR, this means that the law can ONLY apply to government agencies or employees.
The USC is law for government personnel, but only CFR can be applied to U.S. citizens [26 USC 7805]. The IRS rules cannot be mandatory upon 508s because Section 508(C)(1)(a) stipulates that the tax laws have absolutely nothing to do with them. The only way that you can make them mandatory is by volunteering.
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