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Be extremely careful with one-person religious orgs. My friend tried this and got audited within 18 months. The IRS was especially concerned about commingling of personal/org funds and private benefit. They disallowed deductions for his donors retroactively which caused a huge mess! Even small religious orgs need proper governance. At minimum: - Separate bank account exclusively for the organization - Clear documentation of all religious services/activities - Written policies about how funds are used - Some kind of board oversight (even if limited) - No personal use of organization resources
This is great advice. I'm on the board of a small church and we've been careful to maintain clear boundaries. Did your friend's organization eventually get approved or was it permanently rejected?
As someone who works with nonprofit compliance, I want to emphasize a crucial point that hasn't been fully addressed: even if you technically can start as a single-person religious organization, doing so creates significant ongoing compliance risks that could jeopardize your tax-exempt status later. The IRS has specific "intermediate sanctions" rules that can impose excise taxes on excess benefit transactions in religious organizations. With only one person in control, it's much harder to demonstrate that compensation, expense reimbursements, or facility use decisions meet the "reasonable and not excessive" standards. You'll need documented comparability data for any payments to yourself. Additionally, consider that Tennessee has its own charitable solicitation registration requirements if you plan to fundraise. While religious organizations have some exemptions, you'll still need to comply with state transparency requirements about how donations are used. My strong recommendation: start with a simple 3-person board structure from day one. You can maintain operational control while having the governance framework the IRS expects. It's much easier to establish proper procedures initially than to restructure later if problems arise.
Don't forget that S-Corp donations pass through to shareholders! You don't get a direct corporate deduction like C-Corps do. The charitable contribution deduction flows through to your personal tax return (and other shareholders if applicable) via Schedule K-1. This means the deduction is subject to personal limitations, not corporate ones. Worth checking with your tax advisor to make sure you understand how this impacts your personal tax situation.
This is really important! Many S Corp owners miss this distinction. Also worth noting that the enhanced food donation rules still apply, but the benefit passes through to your personal return. The paperwork requirements remain the same - you need all the proper substantiation at the corporate level even though the deduction appears on your personal return.
One thing I'd add from my experience working with inventory donations - make sure you photograph everything before donating! The IRS can ask for evidence of the condition and quantity of donated items, especially for larger donations. I learned this the hard way when I got audited and had to scramble to recreate documentation. Also, consider timing your donations strategically. If you're donating items in multiple batches throughout the year, keep detailed records of market conditions at each donation date. FMV can fluctuate, and you want to be able to justify your valuation method consistently. For food items specifically, check if any qualify as "apparently wholesome food" under the Bill Emerson Good Samaritan Food Donation Act - this can provide additional liability protection when donating. Most packaged goods from Amazon inventory would likely qualify, but it's worth confirming with the receiving organization.
To all those having a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c
I've been dealing with the same issue! The silent calls are so frustrating. I've tried calling multiple times and keep getting disconnected without ever an actual person. Has anyone found a reliable time of day when you're more likely to get through? I'm wondering if calling first thing in the morning might work better than during peak hours.
I'm new here but I've been having the exact same problem with silent IRS calls! @Lydia Santiago you mentioned trying different times - I ve'actually had better luck calling around 7:00 AM EST right when they open. The wait times are still long but at least I don t'get the silent hang-ups as much. Also, I noticed that if you get a silent call, sometimes waiting about 30 minutes before calling back helps avoid getting stuck in the same queue loop. Hope this helps!
Instead of constantly checking transcripts, I set up text alerts with my bank for deposits. Way less stressful than refreshing the IRS page all day. My refund showed up three days before the WMR tool even updated last year. The IRS systems don't always sync up in real-time with what's actually happening with the money.
I'm seeing the same thing and it's really frustrating! Filed 2/8 and still nothing on my transcript. Been checking every night hoping for a DDD but just seeing the same "processing" message. Has anyone noticed if the IRS is prioritizing certain types of returns? Like maybe simple 1040EZ forms are going through faster than returns with schedules? I have Schedule A and wondering if that's adding to the delay. Also wondering if anyone has insights into whether weekend updates are happening at all this year? Last year I remember seeing some Saturday morning transcript updates but haven't seen any mentions of that recently. Really hoping they sort out whatever system issues they're having soon. Need to plan some bills around this refund timing!
Yara Abboud
Just checked and it's working for me now (4:30pm Eastern). Try again, they might have fixed whatever was causing the outage.
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Fatima Al-Farsi
ā¢Just tried again and you're right! It's working now. Thanks everyone for the help and suggestions! š
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Naila Gordon
Glad to hear it's working again! For future reference, the IRS also has a "Where's My Refund" tool that sometimes works even when other parts of the site are having issues. You can also call their automated refund hotline at 1-800-829-1954 if the website is down - it's available 24/7 and usually more reliable than the web interface during peak times.
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