Family Members of the Board May be Held Liable

There used to be a time in recent Church history when people attended Church without worries of intrusion from the Federal Government and especially the Internal Revenue Service (IRS). Church members were eager to serve on Church Boards and during Church activities. Those days are gone!

The IRS Extends Their Reach

We understand accountability and the necessity of obeying the laws of our great nation. No one wants to be part of an anarchist society. Should laws be violated there should and will be consequences—even to a Church. In years past that burden fell upon the Pastor or the Board Members. Things have changed.

What if the IRS thought that holding the Pastor or Board Members (Church Leaders) accountable for wrong-doing, was not enough? What if the IRS determined others in the Church should also be punished?

Brace yourself. That is exactly what has happened.

Family Members of the Church Board May Now be Penalized

According to recent changes in Treasury Regulations, the IRS is now allowed to not only fine officers of the Church, but the reach now extends to their family members. You read it correctly. According to Treasury Regulation 53.4958, the IRS now has legal authority to fine Church officials and their family members severally. This means that the IRS can consider the family members just as guilty as the Board Members.

This regulation allows the IRS to fine the Church Officials and their individual family members up to $10,000.00 for misuse of Church funds. Although a stretch, that might be acceptable if the misuse was intentional. However, according to the regulation, it also applies even if the misuse was unintentional. That’s right—for a simple mistake every Church Official and their individual family members could be penalized.

This means that a Church Official with a spouse and 4 children could be assessed as much as $60,000.00 for that unintentional violation.

Why You Need Us!
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No Church Official should have to worry if their actions (as noble as they may be) are subject to this type of IRS intrusion. This is why Chitwood & Chitwood should be providing appropriate oversight for your Church. We know how to protect all Church Officials.

With more than 79 years of experience in Church Management, we know what others do not. The expertise of our staff will ensure that your Church, staff, and volunteers are protected. We will keep your Church annually compliant and your officials up-to-date on all changes that could be a detriment to your ministry.

It is imperative that every Pastor and Church Official attend the nearest Church Management Conference. At these conferences we show you how to make compliance easy for everyone.

To register for an upcoming conference please visit us online at www.cmtc.org or call 800-344-0076. This will probably be the most informative day of your ministry.
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By Dr. Michael Chitwood