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Tax Court Rules a Pastor's Pass Through Gifts as Taxable Income!
The IRS told a pastor that the love offerings given to him by members of the church were taxable. In disagreement, he sued the IRS in tax court stating that they were voluntary gifts given by members of the church. The tax court disputed with the pastor stating that the members were motivated to give the love offerings because they believed him to…
Read Full Article | CommentsPastor Almost Loses Church
A Washington court ruled that a church's board members were not board members because the church did not follow state law in selecting them. Moreover, because the church never officially adopted bylaws in their organizational board meeting (or at any other board meeting), the procedures followed in the church's bylaws were trumped by state law. Though…
Read Full Article | CommentsHousing Allowance Rules Most Pastors Do Not Know About!
Did you know that the 2002 Housing Allowance Clarification Act requires that every year you calculate three different scenarios to see which one will be used on your W-2? Most churches have not been following this new rule and may under an audit cause the pastor to owe back taxes. Here is how it plays out. The clarification act requires…
Read Full Article | CommentsEcclesiastical Authority and Accountability!
With increasing measure the IRS has made attempts to limit the authority of the pastor in the church. In 2006, regulation kicked in to require that the majority of the board be made up of mostly unrelated individuals. Later in that same year, regulation made it a requirement that a pastor on salary at the church not be able to vote on or set the salaries…
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