Church Law & Tax Report
November/December 2012
Feature Article
New Best Practices for Protecting Children 
Penn State's Freeh report emphasizes building a culture of risk management.
Articles
IRS Inches Closer to Church Inquiry Criteria 
Agency also issues guidance on disregarded SMLLCs.
Recent Developments
Issues that affect ministers and churches, with Richard R. Hammar
Arbitration
Breaking Away from the Parent Denomination 
Binding arbitration clause controls church property dispute.
Church Business Meetings
Invalid Church Business Meetings 
Pastor tries to sue church for violating bylaws.
Arbitration; Church Property
Disaffiliating from a Parent Denomination 
Two rulings address the control of church property.
Denominations - Legal Liability; Employment Practices; Sexual Misconduct by Clergy, Lay Employees, and Volunteers
Court Applies "Ministerial Exception" to Church Discrimination Case 
Employee discrimination claim left to church's decision.
Employment Practices; Sexual Harassment
15-Employee Requirement for Churches 
Church affiliates do not have to combine overall number of employees to meet Title VII rule.
Clergy - Removal; Employment Practices
Violating the Americans with Disabilities Act 
Church terminates employee for refusing to work weekends to care for disabled daughter.
Payroll Tax Reporting
Church Responsible for Payroll Taxes 
Pastor deemed responsible for total amount of delinquent payroll taxes.
Confidential and Privileged Communications
Clergy-Penitent Privilege Invalid in Murder Case 
Deacon allowed to testify about murder suspect's confession.
Sexual Misconduct by Clergy, Lay Employees, and Volunteers
Church Officials Reduce Counseling Payouts for Victim of Abuse 
Court denies break of contract allegation against Archdiocese.