ACTS III Ministries
Navigation Menu
  • Accounting Services
  • Church & Clergy Tax
  • Training & Support
  • Stewardship & Administration
  • Endorsements
  • About Us
  • Follow us on Twitter
  • Follow us on Facebook
  • Subscribe To Rss Feed
  • Follow Us On Google+
Church Charitable Deduction Denied!
Jan21
0

Church Charitable Deduction Denied!

Posted by Mary Hollifield on Jan 21, 2015

Church Charitable Deduction Denied!

Church Charitable Deduction Denied! It’s that time again.  In addition to the tax statements from employers, banking institutions, and various financial entities — we hear from our favorite charities, and even a statement from our church.  The tax laws are very strict when it comes to compliance by employers and corporations.  A church or religious organization, however, that does not acknowledge a contribution incurs no penalty, but without a written acknowledgment, the donor cannot claim a tax deduction.  Failure to provide the appropriate documentation to its parishioners is [in my personal opinion] an inexcusable omission.  The scripture in James 4:17 comes to mind … “ If anyone, then, knows the good they ought to do and doesn’t do it, it is sin for them.”  (NIV) What is the consequence of a church’s failure to go the extra mile?  In one court case (David P. Durden, et ux. v. Commissioner, TC Memo 2012-140) the lack of an appropriate document from the church cost the taxpayers additional tax of $7,552 and an accuracy-related penalty of $1,510.   In this instance, the IRS rejected the church statement because the acknowledgement did not have a statement indicating whether the taxpayers received goods or services for the money contributed.  The second “corrected” statement from the church was also denied because it was not contemporaneous; the statement must be received BEFORE the earlier of the date the original tax return is filed or the extended due date of the tax return. Okay, enough already, we’re convinced, we want to do what is right!  Take a look at the narrative in IRS Publication 1828, Tax Guide for Churches and Religious Organizations, page 24. “Although it is a donor’s responsibility to obtain a written acknowledgment, a church or religious organization can assist the donor by providing a timely, written statement containing the following information: Name of the church or religious organization, Date of the contribution, Amount of any cash contribution, and Description (but not the value) of non-cash contributions. In addition, the timely, written statement must contain one of the following: Statement that no goods or services were provided by the church or religious organization in return for the contribution, Statement that goods or services that a church or religious organization provided in return for the contribution consisted entirely of intangible religious benefits, or Description and good faith estimate of the value of goods or services other than intangible religious benefits that the church or religious organization provided in return for the contribution.” As a church or religious organization, we can apply a more favorable scripture from 2 Corinthians 8:21 …  “For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of man.”...

Read more
Are your Payroll Docs in a row?
Jan04
0

Are your Payroll Docs in a row?

Posted by Mary Hollifield on Jan 4, 2015

Are your Payroll Docs in a row?

“To get one’s ducks in a row essentially means to ensure all of the small details or elements are accounted for and in their proper positions before embarking on a new project. …When a person is fully prepared for any eventuality and has every element in place, he or she can indeed be said to have his or her ducks in a row.” (www.wisegeek.org) As the New Year rolls in, here is a quick checklist to be sure your ducks are in a row —that you are prepared for payroll processing and reporting in January 2015 … 1. New Federal Tax Tables for 2015 updated 2. New State Tax Tables for 2015 updated (if applicable) 3. New salaries and benefits revised in payroll setup 4. Housing Allowance approved and/or parsonage rental value designated 5. Accountable Reimbursement Plans approved 6. Retirement Plans appropriately designated 7. Employee forms (W-4, state-4, I-9) current 8. Employee data (SSN & address) verified and updated if applicable 9. Reconciliation of Forms 941 to W-2 data for 2014 10. Forms W-2 / W-3 prepared and timely...

Read more
Giving Traps…
Dec01
0

Giving Traps…

Posted by Mary Hollifield on Dec 1, 2014

Giving Traps…

GIVING TRAPS… To give or not to give? … that is never the question! As Christ-followers, as Disciples of the Word, as the Church Body (…tax exempt non-profit charitable organization…) –we are commanded to GIVE –help the poor and needy, the sick and the wounded. “He who despises his neighbor sins [against God, his fellowman, and himself], but happy (blessed and fortunate) is he who is kind and merciful to the poor.” Proverbs 14:21 (Amp.) But...

Read more
I Don’t Do Computers!
Oct01
0

I Don’t Do Computers!

Posted by Mary Hollifield on Oct 1, 2014

I Don’t Do Computers!

In our first PowerChurch training session, the Treasurer, Freida (72 yrs old), walked in carrying checkbook and spiral notebook, and firmly commented, “Before we begin, I need to let you know I don’t do computers!” Off to a great start…. She had been diligently and accurately recording contributions, making deposits, and paying the bills for many years. The issue was not accuracy, but efficiency and proper time stewardship. The Pastor wisely agreed that Freida...

Read more

Recent Posts

  • Church Charitable Deduction Denied!
  • Are your Payroll Docs in a row?
  • Giving Traps…
  • I Don’t Do Computers!
  • FAMILY TRAVEL –taxable income?

Recent Comments

    Archives

    • January 2015
    • December 2014
    • October 2014
    • September 2014
    • August 2014
    • March 2014
    • December 2013
    • August 2013
    • May 2011
    • January 2011

    Categories

    • News Articles

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Designed by Elegant Themes | Powered by WordPress