How do you know if someone has filed a tax return using your Social Security number?
This is happening more and more—the latest General Accounting Office (GAO) report says that IRS paid out over $5.8 billion in fraudulent returns in 2013. The IRS does have security measures in place to verify the accuracy of tax returns and the validity of Social Security numbers submitted, but that hasn’t stopped the bad guys…
IRS Dumps Proposal to Ask Charities for SSNs of Donors
The Internal Revenue Service has dropped a proposed regulation giving tax-exempt organizations the option of providing the Social Security Numbers of their donors. The rule, which the IRS and the Treasury Department proposed last September, called on charities to ask for additional personal donor information, including Social Security numbers for any donation of $250 or…
Clergy Estimated Tax Payments
Clergy are subject to estimated tax payments on a quarterly basis which include federal, social security and state taxes. For example, when you receive clergy income in the first quarter of the year, the taxes are due at the end of that quarter. The year is divided into four payment periods, or due dates, for…
Beware – Clergy Audits are on the Rise!
During tax season and throughout the year, IRS agents carefully review every tax return that comes across their desks. However, agents take a second glance if they catch something on a return that seems abnormal. These categories often include charitable contributions, ministry expenses reported on form 2106, SE income, IRC 265 and other business expenses. This…
Tips to Protect Your Personal Information While Online
Clergy Financial Resources urge you to be safe online and remind you to take important steps to help protect your tax and financial information and guard against identity theft. Treat your personal information like cash – don’t hand it out to just anyone. Your Social Security number, credit card numbers, and bank and utility account numbers…
Dealing with IRS Tax Notices
A taxing authority such as the IRS or State will issue a written notice under various scenarios, some of which are discussed below. (Note that the initial contact is always by mail; if you receive a phone call purportedly from the IRS or other tax authority, it is fraudulent, and you should hang up without…
Five things to remember about clergy housing allowance
Clergy are permitted to exclude from their taxable income the costs of maintaining their primary residence. This housing allowance is not included as taxable income on pastors’ W-2s. There are rules for determining, documenting and reporting a housing allowance that need to be followed. Clergy need to determine the cost of maintaining their primary residence for…
Payroll Retention Period
Churches must record and preserve specified information and records to show compliance with Fair Labor Standards Act (FLSA) provisions relating to minimum wage, overtime, equal pay and child labor, for each employee COVERED by FLSA Retention Period: 3 Years Required Name, address Date of birth Gender, occupation Workweek days If paid O/T… regular pay rate…
2016 Tax Season Will Begin On February 1st.
Clergy Financial Resources will begin accepting and e-filing individual returns on February 1, 2016. We will also begin processing paper tax returns at the same time. We look forward to opening the 2016 tax season. Our employees have been working hard helping clergy all year to get ready for this filing season. The filing deadline to submit 2015 tax returns is…
Fraud Alert
We have received word from a congregation that incurred a sizable loss of funds to do an elaborate and sophisticated email scam. Scammers use email addresses similar to existing church email accounts of pastors and other staff members, often requesting sizable sums of money to be wired for “projects that are URGENT and CONFIDENTIAL”. The scammers prey on…
