Jump directly to the content

Officers, Directors and Trustees - Part 1

• Can the officers and directors of a church or other nonprofit organization be personally liable for the amount of payroll taxes that are not withheld or paid over to the government? Yes, concluded a federal district court in New York in a significant ruling. A church-operated charitable organization failed to pay over to the IRS withheld income taxes and the employer's and employees' share of FICA taxes for a number of quarters in both 1984 and 1985. Accordingly, the IRS assessed a penalty in the amount of 100% of the unpaid taxes ($230,245.86) against each of the four officers of the organization pursuant to section 6672 of the Internal Revenue Code, which specifies that "any person required to collect … and pay over any [FICA or income] tax who willfully fails to collect such tax … or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • November 1, 1989

Related ResourcesVisit Store

The 4 Hour Legal Training Program for Church Boards
The 4 Hour Legal Training Program for Church Boards
Understand key legal concepts necessary to protect the board and the church.
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.
Essential Guide to Liabilities and Duties for Church Boards
Essential Guide to Liabilities and Duties for Church Boards
Be aware of ways you can expose yourself to personal legal liability.