Preachers are a territorial group of individuals. Regardless of their five-fold ministry gift (Apostle, Prophet, Evangelist, Pastor, Teacher), most preachers are very offended by anyone receiving credentials if those persons have not met “perceived” ministerial qualifications. Their defense is that they are protecting the integrity of the ministry. Are they protecting the integrity of the [...]
Pastors and ministers of religious institutions have come under increased scrutiny that relates to cash practices, and the proper accounting and reporting required for each. He was the Pastor of a good Church in the mid-Atlantic region. The Church paid its obligations promptly each month. To look at it from the outside looking in everything [...]
Penalties are being assessed personally against Church Officers. Find out how you can protect yourself! Recently, the IRS assessed penalties of $230,445.00 on EACH of the officers of a church-controlled organization for failing to comply with IRS laws regarding employees. We are finding that a large number of ministers and churches are relying on incorrect [...]
1st Circuit Court ordered Church to return donations to members. The Bible Speaks Church was required to return $5.5 million to parishioners in a court ruling. The court ruled there had been private inurement and undue influence. How do you solicit funds for your church? (The Bible Speaks, 869F.2d 628/1st Cir. cert. filed, 57 U.S.L.W. [...]
Recently, a church lost its tax-exempt status when its officials simply could not answer IRS questions on its financial affairs. Does your church have the answers? The IRS has adopted new procedures for auditing the books and records of a church. (Code Section 7611:Internal Revenue Manual, Audit 4293.4)
Tax-exempt status is not a constitutional right. It is an act of “legislative grace,” and the IRS has the responsibility to police this powerful status. The IRS is granted by Congress the power to enforce the law. In order to identify and take action against individuals using the tax-exempt status unlawfully, the IRS has limited [...]
If your Church conducts improper Anniversary Love Offerings, your pastor could now be subject to Criminal Prosecution. CRIMINAL TAX EVASION The elements of the crime are willfulness, an attempt to evade tax and additional tax due. (Code Sec. 7201) CRIMINAL PENALTY FOR FALSE OR FRAUDULENT TAX ADVICE Any person who willfully aids or assists in, [...]
Indianapolis A church that challenged the authority of the IRS was seized by the government on Tuesday to satisfy a $6 million tax debt, with federal marshals wheeling out the former pastor on a gurney as he prayed in protest. “I pray for you that God will forgive you!” shouted the Rev. Greg J. Dixon, [...]
CMTC is recognized as the nation’s leader on tax-exempt organizations and churches. We stand ready to help you defend yourself. We are on your side. If you learn what we know, your church will grow and your books will be squeaky clean!
At the annual Convention of Public Accountants Business meeting, GAPA adopted the official position to oppose the IRS’s “Life Style Audit” method that involves closed years for the following reasons: This is an invasion of privacy Creates double jeopardy Inability to verify “life-style” sources in closed years Closed years records of innocent taxpayers may no [...]
