IRS Updates 2012 Business and Ministry Mileage Rates
The Internal Revenue Service has issued its 2012 optional standard mileage rates that can be used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, the standard mileage rates for the use of a car, van, pickup or panel truck will be 55.5 cents per…
Another Lawsuit Threatens the Clergy Housing Allowance
A lawsuit filed on September 12, 2011 threatens the constitutionality of sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. The Atheist group (Freedom from Religion Foundation) filing the lawsuit asserts the unique benefit set aside especially for “ministers of the gospel” is a violation of separation of…
How the American Jobs Act Will Affect Clergy & Churches
How the “American Jobs Act” Will Affect Church Employees: At the beginning of 2010, a “payroll tax holiday” was passed. Employees normally pay 6.2% on their first $106,800 of wages into Social Security, however, this “tax holiday” decreased that amount by 2%. This allowed employees to pay 4.2% of wages into Social Security instead of…
Back-to-School Tips for Students and Parents Paying College Expenses
Whether you’re a recent graduate going to college for the first time or a returning student, it will soon be time to get to campus – and payment deadlines for tuition and other fees are not far behind. Clergy Financial Resources reminds students or parents paying such expenses to keep receipts and to be aware…
Lawsuit Challenging Clergy Housing Allowance Dropped
In 2009, the atheist group ” Freedom from Religion Foundation” filed a lawsuit challenging the constitutionality of Sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. Their argument stated that the unique benefit set aside for “ministers of the gospel” is a violation of the separation of church…
Department of Justice Appeals “Multiple Home” Housing Allowance Ruling
On May 24, 2011, the United States Department of Justice appealed the tax court decision made in the Philip Driscoll housing allowance case. In December 2010, the United States Tax Court ruled that clergy could use the parsonage allowance exclusion for two homes as long as they are both used exclusively as personal residences. Related…
President Signs Form 1099 Repeal Legislation – How It Will Affect Churches
On April 14, President Obama signed legislation repealing the Form 1099 filing requirements that were imposed under the Small Business Jobs Act and the Pension Protection and Affordable Care Act. The rules would have required churches to report any purchases of goods or services of more than $600 a year from another vendor to the…
How a Potential Federal Government Shutdown Will Affect the Tax Deadline
The absence of a budget agreement between Congress and the Obama administration could result in a shutdown of some federal government services beginning Saturday, April 9. In the event of a government shutdown, the IRS plans to continue accepting all tax returns, both electronically and paper filed. The IRS has stated that they will continue…
Programming Issue with Small Proportion of First Time Homebuyer Credit Claims
The IRS is having programming issue delaying the processing of a small percentage of returns for taxpayers who must repay the First Time Homebuyer Credit. The issue affects taxpayers reporting a sale or disposition of the home that qualified for the credit, which in most cases means taxpayers must repay the credit. The delay also…
IRS Sends 200,000 Balance Due Notices by Mistake
Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts. These notices were not to be processed in the middle of…
