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 We are finding that a large number of Ministers and Churches are relying on incorrect and outdated advice.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)
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