New IRS Changes Every Church Must Know

Pastor Jamison spoke with me concerning the Church Management Conferences scheduled for the upcoming year. During our conversation, he expressed that he didn’t believe he nor his Church needed to attend—especially since they were a small congregation.
 
Then I began to outline just a few of the new IRS changes that would negatively impact Churches and Pastors should they not be aware of them and take appropriate action to protect themselves. Once Pastor Jamison heard just a few of these, in depth, and the penalties he and the Church could be imposed, he registered immediately.

IRS Dangers that May Negatively Impact a Pastor
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Since the Pastor is considered to be the ultimate Responsible Party for a Church, any violations and penalties incurred would first be levied against the Pastor. Some of these violations may be the result of the Church simply honoring their Pastor in simple ways.

For instance, most Churches love their Pastor. Unfortunately, I have reviewed cases where in their attempts to love and honor the Pastor, the Church action resulted in heavy financial penalties and in some cases, prison sentences for their man or woman of God.

The Simple Things

Most Churches have space specifically set aside for the Pastor. This would include things such as his or her office, a special chair on the platform or on the floor of the Sanctuary. Some Churches purchase towels for him or her to use during the service, and special bath towels to be used in the Pastor’s private bathroom.

One issue, that almost every Church practices is a special reserved parking space for the Pastor, Pastor’s spouse, Guest Speakers, and in some cases, Church Staff. I agree with all of these special items of recognition for the man or woman of God. However, the IRS does not.

Simple Methods of Honor Prove to be Very Costly

The IRS has unloaded a myriad of changes affecting Churches, Ministries, Pastors, and Ministers. Most of them are unfavorable. One of those changes involves reserved Parking Spaces.

Effective this year, individuals who are beneficiaries of reserved parking spaces and/or the Church will be required to pay income tax on those spaces. This will also mean that the Church will need to develop a comparable plan to determine a legitimate cost for the space and add it to the Pastor or Staff Member’s W-2 or to report it as Unrelated Business Income. Failure to properly report this could be construed as income tax evasion, fraud, or a few other charges which the IRS may choose to invoke. 

THIS IS JUST ONE OF THE CHANGES FOR THIS YEAR—THERE ARE MANY MORE!!!

Why You Must Attend the Next Church Management Conference

Churches, Pastors, Ministers, and Board Members should not conduct any ministry in this upcoming year without first becoming aware of all the changes and what they should do about them.
 
Chitwood & Chitwood is the Premier Church Management Firm in the nation and will be conducting the Number 1 Church Management Conference in your area. DO NOT ALLOW THIS WINDOW TO PASS YOU BY.
 
To Protect yourself and your Church every Pastor, Pastor’s Spouse, and Board Member should register for the Conference in their area. Failure to do so, may cost you more than you want to pay. Let us inform you of some of these changes and how to protect your Church and Ministry. To Register for the Upcoming Conference Please Call 800-344-0076 or visit us online at www.cmtc.org. The Conferences this year are not ones you can afford to miss.
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By Dr. Micheal Chitwood

 

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What You Will Learn at our  Conferences

Our  Church Management Conferences  will arm you with the information you must have to shield your Church or Ministry from IRS intrusiveness; teach you how to get your Taxes to the lowest possible rate; and daily operate your Church or Ministry within IRS acceptable guidelines.

Our  Conferences  have been taught across the Nation for over 48 years. Because of the Penalties, Fines, and even Imprisonment that the IRS imposed on many Churches and Pastors, Dr. Chitwood felt led by the Holy Spirit to become a buffer between Churches, Ministers, and the IRS.

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