Resource: 2014 Church & Clergy
Richard Hammar, in his annual Church & Clergy Tax
Guide, quotes former Treasury Secretary Paul O'Neill, who
once said "Our tax code is so complicated, we've made it nearly
impossible for even the Internal Revenue Service to understand."
Indeed, complying with
the Internal Revenue Code can be daunting for church leaders, especially
with the thought of the IRS looking over their shoulders.
Such worries felt slightly
lessened—even if only temporary—after a court ruled in 2009 that a higher
ranking official needed to be identified by the IRS in order to authorize
all church audits. Of course, as readers of the Church Finance Today
newsletter know, the IRS has still quietly maintained tabs on churches
through payroll tax audits.
But the church audit matter seemed frozen, with no signs of thawing
Until last month. Recent
developments suggest the IRS is ready to audit churches again
(and 99 apparently merit examinations once an unrelated moratorium on
nonprofit audits lifts).
is the right time to review your church's activities, especially ones
that may affect its tax-exempt status. Use these developments to help
equip and inform your leaders, keeping in mind the Church & Clergy Tax
Guide is the perfect companion to navigate numerous tax
More this week:
- 3 tips for
avoiding a church financial crisis—and these aren't ones you
- How do we fund a new ministry idea
in the middle of our budget year?
- Train your finance committee with this bundle of
resources on embezzlement prevention.
Lord bless you and keep you,
P.S. Receive critical reminders each week about
upcoming legal, tax, and finance deadlines with the Richard Hammar's
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