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Featured Resource:
Richard Hammar's 2008 Church & Clergy Tax Guide
Every year Richard Hammar updates his
annual
Church & Clergy Tax Guide. His time and dedication to
serving ministries is clear through the compilation of this more than
700 page book of detailed tax information for clergy, churches, and
non-profit organizations. Over the years, this guide has become one of
the most anticipated resources we publish. This year was no exception.
If you aren't familiar with the
Church & Clergy Tax
Guide, I urge you to order a copy at
YourChurchResources.com. It's an indispensable guide for
year-round tax planning.
See how it compares to the IRS publication for churches and clergy in:
You Be the Judge:
What the IRS has
published on a variety of common tax issues.
Also in this newsletter:
Ask Richard:
Should parents' signatures on permission slips be notarized?
God bless you as you work to keep your church safe, legal, and
financially sound.
Marian V. Liautaud
Editor, Your Church Resources
churchlawandtaxupdate@yourchurch.net
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 Submitting
"Questionable" Forms W-4 to the IRS
Discover the IRS's final regulations for 2007
by Richard Hammar
The tax code requires every employee to furnish
his or her employer with a signed Form W-4 listing withholding
exemptions. The maximum number of withholding exemptions depends on an
employee's marital status; the employee's filing status; the number of
the employee's dependents; the number of exemptions (if any) claimed
by the employee's spouse on a Form W-4; and the amount of the
employee's estimated itemized deductions, tax credits, and certain
other deductions from income.
Read more.
Brief summaries of the most recent legal
updates that affect churches.
- A California appeals court ruled that a national church held
title to the property of a local church that had voted to
disaffiliate. [See Recent Developments in the January/February
2008 issue of Church Law & Tax Report.]
- A
Massachusetts court ruled that it was barred by the
First Amendment from resolving a minister's claim that his
dismissal was unlawful. [See Recent Developments in the January/February
2008 issue of Church Law & Tax Report.]
Subscribe to
Church Law & Tax Report
to read about these and many more recent developments that affect your
church. Call
800-222-1840.
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Deadlines You Should Know About!
January 15
- Ministers (who have not elected voluntary withholding) and
self-employed workers must file their fourth quarterly estimated
federal tax payment for 2007 by this date (a similar rule applies in
many states to payments of estimated state taxes). Employees of
churches that filed a timely Form 8274 (waiving the church's
obligation to withhold and pay FICA taxes) are treated as
self-employed for Social Security purposes, and accordingly are
subject to the estimated tax deadlines with respect to their
self-employment (Social Security) taxes unless they have entered
into a voluntary withholding arrangement with their employing church
or organization.
- Churches and other non-profit organizations exempt from federal
income taxation must make estimated tax payments with respect to
their unrelated business taxable income if the annual estimated tax
liability is $500 or more. Form 1120-W is used to compute estimated
unrelated business taxable income. The estimated tax payment for the
fourth quarter of the year is due by this date. These new
requirements apply only to exempt organizations that have income
from an unrelated trade or business.
Should parents' signatures on permission slips be notarized?
by Richard Hammar
Richard Hammar is an attorney, CPA, and
best-selling author specializing in legal and tax issues for churches
and clergy. A graduate of Harvard Law School, he is the author of more
than 100 books, including
Pastor, Church, &
Law and the annual
Church and Clergy
Tax Guide. He also writes the
Church Law & Tax
Report and has contributed to numerous journals and
publications.
Q: I am a
children's pastor and I have a question about whether parents'
signatures on permission slips should be notarized. A member of my
church said to me, "Do you know how much a notarized signature is
worth in court? About the paper it is written on."
A: I disagree. A signature that
is authenticated by a notary raises a virtually irrebuttable
presumption that the signature is valid. It is simply not true that a
notarized signature is of no value.
Read more.
The IRS Tax Guide for
Churches—
Part 1
What the IRS has published on a variety of common tax issues.
by Richard Hammar
A church member insists that a church is not exempt unless it has
applied for and received a tax-exempt number from the IRS. The church
treasurer does not know whether the member is correct. What is the
correct response to the member's assertion?
Take the quiz
first, then
read the article
for all the details.
- The IRS has published a comprehensive guide to assist churches
in complying with federal tax law.
True or False
- The IRS Tax Guide for Churches provides helpful information on
the tax status of retirement gifts provided to ministers.
True or False
Finish quiz & read more.
This publication is designed to provide
accurate and authoritative information in regard to the subject matter
covered. It is provided with the understanding that the online
publisher is not engaged in rendering legal, accounting, or other
professional service. If legal advice or other expert assistance is
required, the services of a competent professional person should be
sought. "From a Declaration of Principles jointly adopted by a
Committee of the American Bar Association and a Committee of
Publishers and Associations."
Church Law & Tax Update
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