Our minister’s ordained status lapsed for a few months this year due to his failure to timely renew his credentials with our denomination. How does this affect his housing allowance for the year?
Technically a housing allowance is only available to an “ordained, commissioned, or licensed minister.” So, if a minister’s credentials lapse due to some technical defect, the allowance is not available for that period of time.
However, if and when the credential is reinstated, an argument could be made that it “relates back” to the beginning of the year and “corrects” the technical defect that caused the lapse. For the same reason, I would argue that a minister whose credentials lapsed temporarily could still perform marriages and baptisms, qualify for the clergy privilege, and perform other sacerdotal functions during the time his or her credentials lapsed.
No court has ever addressed this issue, so no definitive answer is possible. Further consultation with a qualified tax professional is advised.
