In 2008, we applied and were granted 501c3 status for Boggs Family Ministries. Before that, every ministry dollar went through our personal income. In 2007 we put thousands of dollars into foreign missions, but had to pay personal taxes and social security on every cent of it.
I agree with paying the taxes that are owed, but paying taxes and social security on money that comes into our hands destined directly for pure ministry use, does not make sense. Especially since there are perfectly legal and moral ways to give that money and NOT pay taxes.
It can be a difficult and expensive process to apply and receive the proper 501c3 determination from the IRS, but we are glad that we did it. It has saved us mucho dollars in taxes and allowed us to put more resources into the ministry.
There is one inconvenience to being a non-church 501c3. Every year, Boggs Family Ministries is required to file one of the various versions of Form 990 with the IRS. 990 is not a tax return, but a reporting form. They want to make sure we are operating according to the regulations and not personally profiting from tax-exempt funds.
It is laborious and intensive and we dread it every year.
The 990 is due by May 15 each year, although last year the deadline was extended due to COVID. We filled it out in June last year.
The last three years we have received an IRS letter saying we had not filed Form 990 and that we owed a huge fee for not filing. We always mail it "Certified, Return Receipt Requested" to avoid this problem, but that does not seem to matter.
It is up to us to prove we filled it out and mailed it. We are required to mail another signed copy (At least 10 pages), Certified, Return Receipt Requested and also send in copies of the paperwork proving we mailed the first one, including the card they signed saying they received it.
It is a mess. One year, we had to mail it three times! It takes about a year for them to acknowledge they received it on time. In fact, the IRS still has not formally acknowledged that they received either of the signed copies last year. UGH!
I have read that there are hundreds of containers of unopened returns from 2020 because of reduced staffing due to the pandemic. I do not know if that is true, but I can easily imagine that is the case.
Anyway, our obligation continues and KJo and I waded into it this week. We had purposed to fill it out the first week of February, but Odie and I tested positive for COVID the previous Sunday and that knocked our plans in the head.
Speaking of head, I need a very clear head to pull the figures together and get this done. I am not sure my head is clear enough now, but the date is upon us and it is time to fish or cut bait.
The first time we filled this out, it took us two full days. Now we are down to about six hours. Part of the reason for less time is I know what figures to keep through the year. I began downloading forms and pulling together numbers about 8:00 AM and we were finished and Kelly Jo was back from the post office about 2:00 PM.
We both prayed over the forms and we are trusting that they will be delivered, accepted, processed and approved in a timely and appropriate manner.
It does not hurt to hope and certainly does not hurt to pray!🙌😜
Thank you for stopping by for a few minutes today. We sure appreciate it.
Davy
