Deacons’ Wives Shocked to Learn they Owe the IRS

8/29/2018

Deacon Franklin called me and by the tone of his voice I knew he was at his wits’ end. When I calmed him down enough to where I could understand his concerns, I knew he and his Church had fallen victim to Treasury Regulation 53.4958. It seemed that the Pastor and Board had mistakenly misused Church funds and someone reported them to the IRS.

Although that is a horrible regulation to violate, it would not have been so bad if the IRS had only penalized the Church to a fine. Unfortunately the latest amendment to that regulation allows further penalties. Each Board Member and their spouses (including the Pastor and his spouse) were being fined $10,000.00. Imagine the shock of the Board Members’ spouses when they discovered they too were targets of the IRS.

Should the money have been misused? No, but it seems the Government has vastly extended its reach into the areas of Christianity and Churches. 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!

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 80 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 call 800-344-0076. This will probably be the most informative day of your ministry.

By Dr. Michael Chitwood

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.