IRS Watches Use of Church Debit Cards
Many churches allow the pastor to use the church debit card for necessary church expenses such as a car allowance, travel costs, lunches and many other things. Under the law, most of these allowances are illegal and can result in fines and back taxes for the minister. Improper use of the church debit card is of high priority on the IRS watch list,…
Read Full Article | CommentsAlabama Pastor Goes to Prison for Love Offerings!
A pastor in Alabama, Gregory Louis Clarke, was sentenced to 21 months in prison for assuming that the love offerings he received from his church were gifts to him. Over a period of several years he received many love offerings from the church for purposes such as car allowances, appreciation gifts and other offerings that he did not consider as normal…
Read Full Article | CommentsCan a Church Get in Trouble for Not Properly Handling Designated Offerings?
Often times, churches and ministries receive designated offerings for building campaigns, outreach programs or benevolence. You may be surprised to know that a large number of churches have trouble properly handling designated offerings. The main reason for this problem is that not many know what the proper procedure is for handling designated…
Read Full Article | CommentsWhat is Taxable Income for a Minister? Part 2
Yesterday you received part 1 of a series of emails titled "What is Taxable Income for a Minister?" Today we will discuss the benefits of income from book or sermon sales or the performance of weddings.Many ministers perform weddings, sell their sermons, books and other teachings in the church book store or as they travel and speak in other…
Read Full Article | CommentsWhat is Taxable Income for a Minister?
Many churches pay certain allowances as a benefit to their minister, such as a car allowance, light bills, water bills and much more. Under the law, most of these allowances are illegal and can result in fines and back taxes for the minister.When a church pays the minister allowances it does so thinking that it is allowed to pay for these items…
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