When do we send a 1099 to an evangelist or missionary?

In general, you are required to send an IRS Form 1099-MISC (that reports taxable income in box 7 of the form) if you have paid an evangelist or minister $600 or more during the calendar year AND those payments are not being accepted and reported upon by another organization. However, if the payments are being directly or indirectly received by another organization (such as a missions organization or the evangelist’s ministry corporation) and this organization will accept responsibility to report the income to the evangelist or missionary, the church is relieved of responsibility to send a 1099-MISC. In either case, it is advisable for you to communicate with the evangelist or missionary concerning whom the payment should be made payable to and the tax identification number for the payee or individual organization if a 1099-MISC is to be issued. This is accomplished by having the evangelist complete an IRS Form W-9 indicating the correct payee information and identification number.

EXAMPLE 1: If payment is made in the name of the evangelist or missionary and he or she is not turning over these payments for reporting to another organization, you should: (1) obtain a Form W-9 from the evangelist or missionary; (2) make payment according to the name provided on the Form W-9 (this is their legal name, official address and Social Security Number); and (3) issue a Form 1099-MISC at the end of the calendar year with the taxable amount paid listed in box 7 of the form (if you paid the individual $600 or more for the year).

EXAMPLE 2: If payment is made to the evangelist’s tax-exempt organization or if payment is made to the evangelist (but only as an agent for the evangelist’s tax-exempt organization), a Form 1099-MISC doesn’t need to be issued by the church. Because the evangelist’s tax-exempt organization is taking responsibility for the proper reporting of any taxable income, the church is relieved of its responsibility to report on this payment as income to the evangelist. We would strongly recommend that the church request and receive a receipt from the evangelist’s organization confirming that the payment has been received and accepted by the organization.

EXAMPLE 3: If payment is made to the General Council of the Assemblies of God, or to the missionary as an agent for the General Council, a Form 1099-MISC doesn’t need to be issued by the church if the church receives documentation that the payment has been reported by the missionary to the General Council and the General Council has issued a receipt to the church. In this case, the General Council is accepting responsibility to report any taxable income for the missionary and relieves the church of this responsibility. However, if the church doesn’t receive a receipt from the General Council, the church isn’t relieved of this responsibility and should issue a Form 1099-MISC to the missionary. We recommend the church obtain a “deputational receipt” from the missionary at the time the payment is made. A copy of this deputation receipt is submitted by the missionary to the General Council and acts as a source document for the General Council to issue a receipt to the church. This deputational receipt is especially important if the payment was made in the name of the missionary as an agent for the General Council.

This article was originally published on ag.org and has been adapted with permission. For more resources from the General Treasurer’s office, click here. 

Disclaimer: The purpose of this FAQ is to provide basic information regarding church administration. Information contained within is generic in nature and is intended as a guide, not a substitute for seeking professional advice specific to your church or any state laws. If you have explicit concerns, please consult a professional.