Many churches have long-term debts, such as a mortgage, that have variable interest rates associated with them. There is much uncertainty that comes along with paying variable interest rates on large amounts of debt over 20 to 30 year periods. Entering into an interest rate swap is an option available to churches that can help […]
If not, should you be? That is the question the IRS will spend a lot of time trying to answer in the next couple of years. The IRS's overseer, the Treasury Inspector General for Tax Administration (TIGTA), recently audited the IRS. The TIGTA said the IRS should take steps to identify tax-exempt organizations that are […]
The IRS has issued the 2009 version of IRS Publication 919, How Do I Adjust My Tax Withholding? as a result of the "Making Work Pay" credit in the American Recovery and Reinvestment Act of 2009 (ARRA). Employees can use this publication to help them determine if their federal income tax withholding is sufficient, and, […]
… and charitable organizations make the 2008 list. The IRS listed the misuse of charitable organizations as one of the 12 most egregious tax scams by taxpayers. Abuse by donors who try to maintain control over donated assets or income from donated assets is just one example. Taxpayers are also claiming overvalued property donations for a larger […]
Churches and schools often have annual meetings or retreats that employees must attend. A source of irritation for employees can be the issue of pay — or no pay — for time spent attending meetings and training sessions. Tell employees they have to attend a meeting or training program, and the employees may raise questions […]
What’s the group in your church that has the real authority? Whatever you call them – Board of Deacons, Board of Elders, Pastoral Council, Leadership Team – you need to have them read this March 30th article from the Fort Worth Star Telegram – http://www.star-telegram.com/804/story/1288144.html Scary stuff! The IRS is starting to enforce rules regarding […]
In the past year or two, Texas and many other states, have enacted a version of a new model institutional funds act (UPMIFA). In response, the Financial Accounting Standards Board issued a staff position paper (FAS 117-1) in August 2008. It applies to not-for-profit organizations (including churches) beginning with 2008 year-ends. Many are completely unaware of […]
Unfortunately, there are lots of good reasons for terminating an employee. But be aware! What may appear to be an ironclad reason for dismissal still needs to be approached and executed with good planning. And the keys to your plan are documentation and communication. When an incident occurs, make your written record of the incident as […]
Does your church have a coffee shop? Many churches have found that coffee shops are a great way to increase fellowship at their churches. Often times, PSK is asked about the tax and accounting issues that come along with coffee shops. These are great questions! Nonprofit organizations can be taxed on dollars that are earned […]