Does a Church Need a Tax ID (EIN)?

As a church generally doesn’t need to pay taxes, some might think that it doesn’t need a tax ID. However, a church does need a tax ID, as it still needs to file taxes even though it may not pay them. A church uses its tax ID number to identify it to the government, as well as to hire employees and open bank accounts. The church will need to file for non-profit status, and it will need to do so using its tax ID.

Further, not every church necessarily doesn’t pay taxes. Churches have to meet specific standards in order to qualify as a church and to qualify as a non-profit organization. A church that does take profits, for instance, isn’t going to be considered a “church” by IRS standards, and may still need to pay taxes.
An EIN is used for many things, apart from just filing taxes; it can be used for getting permits, or getting lines of credit. Consequently, it would be a good idea for a church to get an EIN even if it didn’t have to file taxes.


Written by Maurice Mallory