by Carolyn Jenkins Excerpt from World Religion The Internal Revenue Service is cracking down on tax breaks some ministers have enjoyed by filing tax returns as self-employed contractors – rather than employees – of their churches and other religious institutions. The IRS and tax courts are classifying some ministers as employees, subjecting them to the [...]
This happened in one of the largest and fastest growing churches in Orlando, Florida. Services were packed out every week-standing room only. Miracles were taking place and members loved their pastor. The Board of Trustees said they would always be with him through thick and thin. One sunny day, the pastor called his secretary to [...]
Congress has recently finalized Code Section 4958, which enables the IRS to levy money sanctions against key church and ministry personnel who violate or cause the organization to violate IRS rules. The government has wised up – it wants the money instead of the tax-exempt status of the ministry, but the IRS can still take [...]
Have you failed to issue the 1099 Form? Under new law, who do you give 1099 Forms to? Has the limit been changed? Have you neglected to issue the Pastor/Minister a W-2 Form? What is the new IRS status on Ministers? How do you handle ministry related expenses? Is it illegal to give the Pastor [...]
In January 2002, Congress finalized Code Section 4958, this is the first of possibly several forthcoming legislative proposals to limit the tax-exempt status of certain organizations. The enactment of these “intermediate tax sanctions” will require much greater attention to tax planning by churches in their business affairs. Ministers’ tax deferred retirement plans may face an [...]
