There seems to be this uproar regarding churches paying taxes on their parking lot. What we need to keep in mind is that this particular church rented out its parking lot on a regular and consistent basis. What this means to this particular church, is … Continue readingParking lot tax
The question “What is Unrelated Business income “ is confusing to a lot of churches. According the IRS URBI is defined as an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements: It is a trade or … Continue readingUnrelated business Income
Tax Inquiries and Examinations of Churches Congress has imposed special limitations, found in section 7611 of the Internal Revenue Code, on how and when the IRS may conduct civil tax inquiries and examinations of churches. The IRS may begin a church tax inquiry only if … Continue readingSpecial Rules Limiting IRS Authority to Audit a Church
One thing that I am asked with frequency is “why do we need to have an outside accountant review our books on a regular basis when we have a bookkeeper. While the answer to this question varies from organization to organization the main reason is … Continue readingNonprofit bookkeeper arrested in embezzlement case
I have seen it countless times, a group of people get together and decide to start a church. They find a pastor, a secretary and someone to act as the treasure. Get a building, and start having church services.