• A recognized creed and form of worship,
• A definite and distinct ecclesiastical government,
• A formal code of doctrine and discipline,
• A distinct religious history,
• A membership not associated with any other church or denomination,
• Ordained ministers ministering to the congregation,
• Ordained ministers selected after completing prescribed courses of study,
• A literature of its own,
• Established places of worship,
• Regular congregations,
• Regular religious services,
• Sunday schools for the religious instruction of the young, and
• Schools for the preparation of

Click below to learn more about me and my current offers

https://my.linkpod.site/MbrownEA

Click below to learn more about me and my current offers

ISSUES:

• Whether petitioners are entitled to deduct job expenses and certain miscellaneous expenses totaling $37,535 for the 2014 tax year.

FACTS:

• Petitioners, MInister and his wife, resided in Oklahoma and filed a joint federal income tax return.

• Minister was a staff pastor, and his wife was a salesperson and later a teacher.

• They moved from Oklahoma to Florida for new job positions, incurring various expenses.

• Petitioners claimed unreimbursed employee expenses, including vehicle expenses, travel expenses, meals and entertainment, and other business expenses.

• Petitioners' records were lost, and they attempted to reconstruct their mileage log from memory.

Click below to learn more about me and my current offers

Episode Date: June 18, 2024

Episode Summary: It is June and it is HOT! That means the year is halfway over, so now is the perfect time to conduct your mid-year review. In today's episode, we discuss the importance of performing a mid-year review for your church and the three key areas that require your attention: Budget, Contributions, and Minister Housing Allowance. Are you ready? Let’s go!

Quote of the Day: Today's quote comes from John Gordon & Alex Demcazk's book, “The Sale”: “A fool thinks only of how his decisions will impact him in the moment, but someone who has wisdom considers the long-term implications of his decisions.”

Episode Highlights:

1. Budget:

• Definition: An estimate of income and expenditures for a set period.
• Importance: Budgets are not set in stone and can be adjusted when needed. With major church activities often occurring in the third and fourth quarters, a mid-year review can help prepare for increased expenses.
• Action Steps:
  • Provide each department leader with a year-to-date copy of their budget and expenses.
  • Have leaders review their planning schedules for the remainder of the year to determine if they are on target or if adjustments are needed.
  • Follow your church's procedures for budget adjustments as outlined in your Financial Policy and Procedure guide.

2. Contributions:

• Mid-Year Contribution Statement: Send a mid-year contribution statement to donors, showing their giving year-to-date along with a Giving Supplement statement highlighting completed ministry projects.
• Methods: Contribution statements can be mailed, picked up at the church office, or accessed via an online giving portal.
• Communication: Include a sampling of ministry accomplishments in your church bulletin or pre-service slides to show the impact of donations.

3. Minister Housing Allowance:

• Understanding the Benefit: Review housing expenses year-to-date. Qualified ministers should take note of any unexpected expenses, such as storm damage or essential repairs.
• Key Point: Housing allowance adjustments must be proactive, not retroactive. Ensure the designation is made before paying for the expenses to include them in the housing allowance.

Call to Action:

• Take the time now to conduct your mid-year review focusing on your church's budget, contributions, and minister housing allowance.
• Share today's episode with other church leaders to help them understand the importance of these mid-year adjustments.

Six Steps to Doing Business God's Way biz owners

Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?

Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group

Schedule Consultation

The current scam going around for QuickBooks is discussed in today's episode.

I share the "red flags" to look for along with other helpful information.

QBES Care Support 888-702-5228

QB Support 800-446-4484

to report a scam security@intuit.com

Six Steps to Doing Business God's Way biz owners

Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?

Join the BEST Facebook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group

Schedule Consultation

Welcome to The Church Finance & Minister Tax Podcast! Are you ready to safeguard your church's financial health? Join us as we uncover common pitfalls and share tips for financial compliance. From avoiding the commingling of funds to reporting taxable income, get ready to empower your church with the knowledge it needs. Stay tuned for valuable insights coming up in our final part of the 3-part series on Navigating the IRS.

"You are successful when you do what you need to do today." — Craig Groeschel, "Think Ahead"

1. Commingling Personal and Church Finances

   • Issue: Using church funds for personal expenses and reimbursing later blurs financial lines.
   • Consequences: Lack of transparency, serious tax implications.
   • Solution: Maintain separate personal and church accounts, revoke credit card privileges if misused, and ensure expenses are properly handled and reported.

2. Failure to Report Taxable Income

   • Issue: Ministers failing to report housing allowances and other taxable income accurately.
   • Consequences: Penalties and legal repercussions from the IRS.
   • Solution: Understand housing allowances are subject to Self-Employment Contributions Act (SECA) taxes, and consider voluntary Federal withholding by the church to aid compliance.

3. Importance of Professional Guidance

   • Issue: Unique complexities in church finances require specialized knowledge.
   • Solution: Seek professionals with expertise in nonprofit and church finances. Research and choose the right financial advisor, attend relevant training, and continuously educate church leaders on financial laws and best practices.

• New Course: Intro to Church Finances
  • Details: A comprehensive beginners course to help church leaders understand financial management and compliance.
  • Join the Waitlist: Be the first to know when it launches by signing up at www.introtochurchfinances.com.

Maintaining financial compliance in church operations requires consistency, transparency, and a commitment to understanding and fulfilling the legal and tax obligations for the church. By avoiding common pitfalls such as commingling funds and failing to report taxable income, and seeking professional guidance, church leaders can safeguard their organization's financial integrity, allowing staff to focus on their spiritual missions without the stress of financial mismanagement.

Thank you for joining us for the final episode of our Navigating the IRS series. Stay tuned for more episodes on how to empower your church with sound financial practices.

This podcast is brought to you by Hallmark Tax Solutions, LLC, specializing in church financial compliance and minister tax services. Learn more at Hallmark Tax Solutions, LLC.

Six Steps to Doing Business God's Way biz owners

Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?

Join the BEST Facebook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group

Schedule Consultation

Listen in and hear the passion :-)

Six Steps to Doing Business God's Way biz owners

Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?

Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group

Schedule Consultation