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• On October 29, 1987, the House of Representatives passed the Omnibus Budget Reconciliation Bill of 1987 (H.R. 3545). Provisions of interest to churches and clergy include the following: (1) repeal of the motor fuels and tires excise tax exemptions for buses owned and operated by churches and other nonprofit organizations; (2) the IRS will begin charging fees for some of its services, including $320 for each exempt organization ruling and $200 for each exempt organization determination; (3) delays until 1988 the provision in the Tax Reform Act of 1986 requiring taxpayers (including many clergy) who use the estimated tax procedure to pay at least 90% of their current year's taxes in their quarterly estimated tax payments; (4) employers (including churches) must give effect to replacement withholding allowance certificates (W-4 or W-4A) no later than the start of the first payroll period ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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  • January 1, 1988

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