by Mark Jones

Does your pastor receive fees directly from individuals or families for performing marriages, funerals, or baptism services? If so, are these fees for professional service considered taxable income to the minister? [read more]

by Mark Jones

I was sitting at a luncheon where Frank Sommerville, a leading nonprofit attorney, was providing an update on legal and tax issues. He brought up a 2012 tax court case where the IRS disallowed contributions in the amount of $25,171 because the church contribution tax receipt didn’t contain the right disclaimer. [read more]

by Jac La Tour

It can be challenging to stay abreast of legal and legislative changes affecting your ministry. What, for example, are you to make of recent legislation passed by Congress to avoid the so-called fiscal cliff?

To find out, I emailed a few questions to Dave Moja, partner and national director of not-for-profit services with CapinCrouse LLP. Here’s how he responded. [read more]

by Mark Jones

According to the IRS, the recent sequestration which has gone into effect is imposing automatic cuts to the Small Business Health Care Tax Credit claimed by many small ministries. As a result, the portion of your claim will be reduced by 8.7%. The sequestration reduction rate will be applied until the end of the fiscal year (Sept. 30, 2013) or intervening Congressional action, at which time the sequestration rate is subject to change.  Check the IRS’s notice for more information.

by Mark Jones

Taxes have gone up and we are all concerned about the potential negative impact on giving to our ministries. Should we be bracing for lower donations, or is it possible the tax code changes could actually be beneficial?

To find out, let’s take a look at several provisions in the new tax code.

Tax Rates. The tax rates went up for the highest income earners, as you can see here. 

Before looking at an example of the new tax rate’s impact for a high income earner, let’s look at another provision. [read more]