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IRS Extends Deadline for Some ACA Reporting Requirements
Employers receive more time for providing employees with specific forms.
IRS Extends Deadline for Some ACA Reporting Requirements
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The IRS has extended the due date of some (not all) of the Affordable Care Act’s requirements for employers to provide forms to employees, according to national CPA and consulting services firm CapinCrouse. This was done by the IRS “to give employers, insurers, and ...

What Would Repealing the Johnson Amendment Actually Mean for Churches?
How a repeal of the amendment that prohibits political endorsements could affect pastors and churches.
What Would Repealing the Johnson Amendment Actually Mean for Churches?
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During this year’s election season, many churches and pastors have likely heard that Republican presidential nominee Donald Trump has indicated he is in favor of repealing the Johnson Amendment, which governs the political activity of churches. The repeal of the Johnson ...

Interview: The Definition—and Danger—of 'Inurement'
Richard Hammar offers a definition for a common mistake that can have serious consequences.
Interview: The Definition—and Danger—of 'Inurement'
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While you may have heard the word “inurement,” you may be unsure of its definition. In this interview, Richard Hammar provides a definition of inurement.

Could inurement have implications for a church’s tax-exempt status? Hammar addresses instances where ministries ...

How Long Should I Keep Income Tax Records?
Know what to hold on to after your form is sent in.
How Long Should I Keep Income Tax Records?
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You must keep records so that you can prepare a complete and accurate income tax return. The law does not require any special form of records. However, you should keep all receipts, canceled checks, and other evidence to prove amounts you claim as deductions, exclusions, or ...

Meeting IRS Requirements When a Pastor Runs for Office
How one church navigated the tricky issue of political involvement.
Meeting IRS Requirements When a Pastor Runs for Office
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With the 2016 presidential election coming up, many churches and ministry leaders may wonder what they can and cannot do when it comes to politics. Is there a line, and, if so, when do you cross it?

Churches are required to remain impartial toward candidates, yet church leaders ...

The Causes and History of Church Property Tax-Exemption
A podcast interview with Frank Sommerville reveals the long, world history of religious exemption.
The Causes and History of Church Property Tax-Exemption
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Why are churches exempt from property taxes? When was this decided in the United States and by whom? What is the history of tax-exemption behind the decision?

Frank Sommerville, an attorney, CPA, and editorial advisor for Church Law & Tax, discusses the answers to those ...

Experts Featured in Upcoming Church Management Conference
Editorial advisors will present on employment law, health care reform, and more.
Experts Featured in Upcoming Church Management Conference
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The annual Southern Baptist Business Officers Conference (SBBOC) this March in Dallas will help churches learn the latest information on employment law, tax, and compliance issues, and health care reform updates.

A number of editorial advisors from Christianity Today's ...

IRS: Special Church Audit Protection Law Applies to Employment Tax Inquiries and Examinations
How this recent announcement affects churches.
IRS: Special Church Audit Protection Law Applies to Employment Tax Inquiries and Examinations
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The Internal Revenue Service recently announced that it will apply the special church audit protection rules in Internal Revenue Code Section 7611 to church employment tax inquiries and examinations. Prior to the recent announcement, the IRS’s official position was ...

Q&A: Does the Affordable Care Act's "Cadillac Tax" Affect Churches?
This confusing topic is gaining media coverage. Here's what churches should know.
Q&A: Does the Affordable Care Act's "Cadillac Tax" Affect Churches?
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Media coverage is increasing with respect to the Affordable Care Act's so-called "Cadillac tax." Even though it now doesn't become applicable until 2020, what do employers—including churches—need to know about this tax?

It's a 40 percent tax, ...

The Top Church Management Conferences for 2016
Training across the nation to gain knowledge in financial, legal, and risk matters.
The Top Church Management Conferences for 2016
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A number of conferences are available for those who work with legal, financial, and risk management matters for their church. Here are some we recommend:

1. 2016 XP-Seminar

This event, led by XPastor.org founder David Fletcher, educates and encourages executive pastors, ...

A Tax Reminder for Church Bulletins
Before the end of the year, send this message to your congregation.
A Tax Reminder for Church Bulletins
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Donors must substantiate individual cash contributions of $250 or more “by a contemporaneous written acknowledgment of the contribution by the donee organization.” Donors cannot substantiate individual cash contributions of $250 or more with canceled checks. They ...

After the Same-Sex Marriage Ruling, What Legal Rights Do Pastors, Churches Have?
Understanding the officiating of ceremonies and the use of buildings for weddings.
After the Same-Sex Marriage Ruling, What Legal Rights Do Pastors, Churches Have?
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In late June, the US Supreme Court ruled that same-sex couples have a legal right to marry, and many pastors are wondering what this means for their work and their church. Richard R. Hammar, a well-known attorney specializing in legal issues for churches, helps clear the ...

The ACA Patient-Centered Outcomes Research Institute Fee
Some self-insured health plans are required to pay by July 31.
The ACA Patient-Centered Outcomes Research Institute Fee
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With the implementation of the Affordable Care Act (ACA), some issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans are required to pay a fee that helps fund the Patient-Centered Outcomes Research Institute.

The fee is ...

Tracking Receipts: Why One Church Has Only One Credit Card
Five reasons this has worked well
Tracking Receipts: Why One Church Has Only One Credit Card
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Ed Marino has 14 years of experience as a church business administrator and recently wrote an article on using images on church websites that is one of ManagingYourChurch.com's most popular articles this year.I asked him for more wisdom on how to serve well as a church business ...

Q&A: Are Housing Expenses Paid Directly By a Church Nontaxable?
Q&A: Are Housing Expenses Paid Directly By a Church Nontaxable?
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Q: Some churches pay part or all of a minister’s housing expenses directly. Can such payments be treated as a nontaxable housing al­lowance?

A: It could be argued that by agreeing to pay for a minister’s housing expenses, a church is, in effect, designating a ...

A Tax Reminder for Donors
Add this message to your church bulletin or newsletter
A Tax Reminder for Donors
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To avoid jeopardizing the tax deductibility of charitable contributions, churches should advise donors at the end of 2014 not to file their 2014 income tax returns until they have received a written acknowledgement of their contributions from the church. This communication ...

Pastors Must Pay Taxes
Calling compensation a "love gift" doesn't shield it from taxation.
Pastors Must Pay Taxes
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In this audio interview with podcast host Tony Gill, Richard Hammar discusses misconceptions churches have about how tax law relates to pastors. For further insights into the issues covered in this interview, see Hammar's "Why Pastors Must Pay Federal Income Taxes" ...

Designating a Housing Allowance
Make sure you do it right.
Designating a Housing Allowance
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Many churches are lax in their housing allowance designations. Internal Revenue Regulation 1.107(b) requires that in order to be housing allowance, the amount must be designated as such pursuant to an official action taken in advance of the payment of the allowance by the ...

The Taxes Churches Have to Pay
Richard Hammar says expert guidance is needed to understand tax laws.
The Taxes Churches Have to Pay
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In this audio interview with podcast host Tony Gill, Richard Hammar discusses misconceptions many people have about how tax law relates to churches. For further insights into the issues covered in this interview, see Hammar's annual Church & Clergy Tax Guide and Church ...

IRS May Look Into Activities of 99 Churches
Agency appears ready to monitor church political activity again.
IRS May Look Into Activities of 99 Churches
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Details from a settled lawsuit in Wisconsin slowly continue to surface, giving a growing sense the Internal Revenue Service (IRS) is ready to resume monitoring political activities of churches, although questions still remain.

A letter sent in June by Mary Epps, the acting ...

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