Jump directly to the content

• A federal district court in Pennsylvania rejected a truck driver's contention that his earnings were exempt from federal taxes because he was a church. The taxpayer had established a church (that had been denied tax-exempt status by the IRS), and signed a vow of poverty which provided "I hereby make an irrevocable gift of all my possessions … and all my income whatsoever, regardless of the form of the income, to the church. Outside employment income is not personal income, but rather gift income to the church, and not of the individual." The taxpayer established a checking account in the church's name into which all his secular earnings were deposited. Checks thereafter were drawn on the church account to pay for the personal expenses of the taxpayer. No taxable income was reported and no tax returns were filed. In rejecting the taxpayer's claim, the court reaffirmed the "basic ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • March 1, 1988

Related ResourcesVisit Store

50-State Public Accommodations Laws Report
50-State Public Accommodations Laws Report
How statutes and court decisions across the country do - or don't affect churches
Avoiding Church Lawsuits
Avoiding Church Lawsuits
Create proactive procedures to avoid common reasons why churches most often go to court.
Board Member Orientation
Board Member Orientation
The concise and complete guide to nonprofit board service
Understanding Church Insurance
Understanding Church Insurance
Understand your church's insurance needs to be assured you have adequate coverage.