Church Law & Tax Report
September/October 2017
Articles with a
are available only to members.
are available only to members.
Become a Member
Keep your church safe, legal, and financially sound.
When you become a member you get instant online access to help your church:
- Reduce potential legal liability
- Manage finances and risks
- Comply with IRS requirements
Feature Article
Building with Confidence
A legal and financial blueprint for church construction projects.
Articles
Public Benefit Programs Available to Churches
Excluding church from playground funding solely based on its religion violates First Amendment, Court says.
Church Liability for Publishing Information Online
Despite dismissal, case shows precautions churches should take when handling private information.
Recent Developments
Issues that affect ministers and churches, with Richard R. Hammar
Breach of Contract; Clergy - Removal; Judicial Resolution of Church Disputes
State Supreme Court Addresses Pastor's Rescinded Resignation
The central issue was the pastor's status, a question the court was barred from resolving by the constitutional protection of religious liberty.
Compensation and Benefits; Income Taxes - Clergy
Tax Court Rejects Pastor's Attempt to Avoid Taxes Through Vow of Poverty, Salary Renunciation
The use of funds for personal purposes indicates dominion and control, even over an account titled in the name of a church or other religious organization.
Church Records; Compensation and Benefits; Excess Benefit Transactions
Religious Corporation's Attempt to Block IRS Summons Rejected by Federal District Court
This case provides a helpful review of some of the protections of the Church Audit Procedures Act that were set forth in section 7611 of the tax code.
Church Members; Clergy - Selection; Judicial Resolution of Church Disputes
Ecclesiastical Abstention Doctrine Bars Court from Intervention in Dispute over Church Bylaw Compliance
Court could not adjudicate this case without interfering in inherently ecclesiastical matters of pastoral selection and church discipline.
Coffee Shop Founded by a Pastor Fails to Qualify for Tax-Exempt Status
A predominantly commercial enterprise will not qualify for tax-exempt status if its principal activities are indistinguishable from competing for-profit entities, even if it engages in occasional or insignificant activities in furtherance of its religious mission.
Q&A
Q&A: Is This "Humanitarian Effort" Possible—or Even Legal?
While this plan may be well intentioned, it must be abandoned immediately.
