Employer Identification Number

Just received a call from a ward financial clerk asking if we have an Employer Identification Number. Do local units have EINs?

Michael Klobas
Stake Clerk

Uh, why.............?

I think there needs to be more information. It could be harmless, but it could spell trouble if handled incorrectly. Knowledge of the "bigger picture" is needed to know what's going on.

A scout was trying to purchase some equipment and he was asked for the EIN. That is all I know, at this point. But it did cause me to wonder about the EIN.

Michael Klobas
Stake Clerk

If he was trying to purchase equipment for the church, they may have wanted the number to verify/record that it was sold to a non-profit organization.

mklobas wrote:Do local units have EINs?

Stakes used to have them, when they paid custodians directly. They no longer do, although if they ever did have one it would still be valid, I suppose.

If you are just trying to purchase something without paying state sales tax, each state has a different way of doing it. In some states, you get a number from the state tax office that you give to the vendor. It is usually called a tax-exempt number.

In some states, there is no such thing as a tax-exempt number. You just fill out a form certifying that you are exempt from paying state tax, and the store keeps it on file in case the state revenuers come calling.

In some states, organizations are not exempt from paying sales tax.

For California, search through the State Board of Equalization site. From my brief perusal of the documents at that site, it appears that there are very few exceptions from the requirement to pay sales tax in California, even by churches. Find a good accountant or attorney in your stake who is familiar with the state tax laws and let him explain it to you. [grin]

lajackson wrote:If you are just trying to purchase something without paying state sales tax, each state has a different way of doing it. In some states, you get a number from the state tax office that you give to the vendor. It is usually called a tax-exempt number.

This can be obtained for the stake by contacting the Tax Administration Department at CHQ.

Thanks.

The Tax Department said that in California, the Church pays the tax and does not claim a sales tax exemption.

This forum is of tremendous value to me.

Michael Klobas
Stake Clerk

lajackson wrote:Stakes used to have them, when they paid custodians directly. They no longer do, although if they ever did have one it would still be valid, I suppose.

...

Things may have changed since I was released as stake finance clerk in late 2004, but at that time stakes still had to issue Form 1099 if the stake or units within the stake paid any non-corporation $600 or more for services, and that form requires a taxpayer ID number for the stake. Unless the EIN is different from the taxpayer ID number, it should be available in the stored Form 1099 paperwork.

rmrichesjr wrote:Unless the EIN is different from the taxpayer ID number, it should be available in the stored Form 1099 paperwork.

They are one and the same. I had forgotten. You are right.