Penalties are being assessed personally against Church Officers. Find out how you can protect yourself!
Recently, the IRS assessed Penalties of $230,445.00 on EACH of the officers of a Church-Controlled Organization for failing to comply with IRS laws regarding employees. We are finding that a large number of Ministers and Churches are relying on incorrect and outdated advice.

1st Circuit Court ordered Church to return donations to members.
The Bible Speaks Church was required to return $5.5 Million to Parishioners in a court ruling. The court ruled there had been Private Inurement and Undue Influence. How do you solicit funds for your church?
(The Bible Speaks, 869F.2d 628/1st Cir. cert. filed, 57 U.S.L.W. 3814/U.S./No. 88-1977)

A Church lost its Tax-Exempt status when its officials simply could not answer IRS questions on its Financial Affairs.
Does your Church have the answers? The IRS has adopted new procedures for auditing the books and records of a Church.
(Code Section 7611:Internal Revenue Manual, Audit 4293.4)

Tax-Exempt Status is not a Constitutional right. It is an act of “legislative grace,” and the IRS has the responsibility to police this powerful status.
The IRS is granted by Congress the power to enforce the law. In order to identify and take action against individuals using the Tax-Exempt Status unlawfully, the IRS has limited rights to examine any Church’s books.
Legal requirements of a Tax-Exempt Organization are far greater than for other Organizations.
Every Pastor in America should take a closer look at the laws affecting their Church.

If your Church conducts improper Anniversary Love Offerings, your pastor could now be subject to Criminal Prosecution.

• CRIMINAL TAX EVASION
• The elements of the crime are willfulness, an attempt to evade Tax and additional Tax due. (Code Sec. 7201)
• CRIMINAL PENALTY FOR FALSE OR FRAUDULENT TAX ADVICE
• Any person who willfully aids or assists in, Procures, Counsels or Advises the procreation or presentation of materially False or Fraudulent Return, Affidavit, Claim or other document, is guilty of a Felony. (Code Sec. 7206(2)
• OTHER CRIMINAL PENALTIES (fines and/or imprisonment) are imposed for:
  • willful failure to file a return; (Code Sec. 7203);
  • willful filing of a False or Fraudulent return; (Code Sec. 7207);
  • willful failure to pay a Tax; (Code Sec. 7203);
  • willful failure to collect or pay over a Tax (where under a duty to do so); (Code Sec. 7202)
  • willful failure to furnish a W-2 to Employees in the manner, at the time or with the information required, or willful filing of a False or Fraudulent W-2; (Code Sec. 7204);
  • willful Failure to keep proper records; (Code Sec. 7203);
  • willful Failure to supply Tax Information; (Code Sec. 7203);
  • willful Failure to obey a Summons; (Code Sec. 7210);
  • improper disclosure or use of Tax return information by a Tax return preparer; (Code Sec. 7216);
  • various other offenses relating to returns, Statement Stamp Taxes, etc

Indianapolis
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A church that challenged the authority of the IRS was seized by the government on Tuesday to satisfy a $6 million tax debt, with federal marshals wheeling out the former pastor on a gurney as he prayed in protest.
“I pray for you that God will forgive you!” shouted the Rev. Greg J. Dixon, past emeritus of the Indianapolis Baptist Temple. “Welcome to communism, America.”
Five church members were inside when 85 federal marshals arrived, supported by 70 city police officers. No one was hurt or arrested, though some Church supporters had to be carried out, among them Dixon.
“To have the IRS come in and seize the Church’s property, that is an extraordinary event unparalleled in American history. In fact, if the IRS doesn’t collect 6 Million Dollars for the sale of the assets, code section 6672 allows the IRS to penalize each one of the responsible Board Members. We certainly have not heard the last of this yet. I hope those Board Members have the Proper Legal Protection.”
Source: Associated Press

H. Michael Chitwood

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Dr. Chitwood has been the Founder and CEO of Church Management and Tax Conferences for over 50 years. Dr. Chitwood has been teaching churches and Non-Profits how to “Get Their House In Order” through Television, Radio, and Live Events. As a best selling author and speaker, he conducts over 350 conferences a year teaching Compliance and Financial Accountability. Dr. Chitwood’s goal and lifelong calling has been to help Churches and Ministers become and remain Compliant. He has always been led by God to help people help themselves. As an Ordained Minister and “The Authority” on Financial matters, he has pledged his life to share his knowledge freely with men and women of the Ministry. With over a hundred best-selling books, he is one of the Nation’s most highly coveted Public Speakers.