Paid Preparer or DIY Software?
Tax Software For Ministers A frequent mantra that I often repeat is “Minister’s taxes are not hard, they are just different.” Of course, easy is a relative term. For us, many tax returns are not difficult because we have prepared thousands of minister returns. Most people, including many preparers, do not know the differences…
What is Unrelated Business Income for Churches?
As a general rule, churches do not pay federal corporate taxes. This is by virtue of a church enjoying federal tax-exempt status under Section 501(c)(3) of the federal tax code. While churches are exempt from business taxes for their activities consistent with their exempt (religious) purposes, churches sometimes engage in activities that are unrelated to…
IRS Begins Correcting Tax Returns
The IRS will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan (ARP) later excluded from taxable income. These corrections are being made automatically in a phased approach. The first phase of adjustments is being made for single taxpayers who had the simplest…
Tax Payment Deadline & Voluntary Withholding
Quarterly Tax Payment Deadline & Voluntary Withholding Now that the May 17 deadline for filing federal tax returns has passed, the next deadline that is relevant to many ministers is the quarterly estimated tax payment due on June 15, 2021. Ministers are Exempt from Withholding Requirement: Ministers are exempt from having employing churches withhold…
Are Moving Reimbursements Taxable?
The approaching summer season is often a time of transition. During this time of year churches frequently hire new employees who relocate to serve the church. Ministers and other church employees sometimes find new opportunities and make a change during the summer months, between school years. Coming out of the disruptions caused by COVID-19, many…
Important Documents for Churches to Keep
There are certain documents all churches should keep in an important place for future reference. File-Stamped Formation Document, and Amendments: For any church that is incorporated, it is important to retain a copy of the Articles of Incorporation, or Certificate of Incorporation, that was filed with the state or county. Once filed, this document will…
Important Documents for Ministers to Keep
Important Documents for Ministers to Keep There are certain documents all people should keep in an important place for future reference, such as a birth certificate, a social security card, or a last will and testament. For ministers, there are a few other important documents that should be retained and kept in a safe place….
Why Is My Tax Refund Delayed?
This is no ordinary tax season. The Internal Revenue Service is struggling through this filing season unlike any other in history. The agency is under tremendous strain thanks to the enormous extra burden associated with sending out three rounds of stimulus checks; coping with other pandemic-related changes to the tax code (such as the belated exemption…
Do Churches Pay Taxes?
Tax season is upon us as individual taxpayers. But when it comes to churches as organizations, do they pay taxes? Like so many things in life, the answer to this question is rather complex. In fact, the real answer to this question is: “Yes, and no.” While it is true that churches, merely by the…
Reminder – Estimated payment Due on April 15th
Notice 2021-21, issued on March 29, 2021, does not alter April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to…
