skip to Main Content
  • December 28, 2015

Election Year Rules for Churches and Non-Profits

2016 is a national election year, in which Americans will choose their political leaders at every level of elected government.  Churches and non-profit organizations have much to say on the issues being debated and have a First Amendment right to have their views heard.  The Internal Revenue Code has prohibitions against campaign activity for or against political candidates.  This article reviews the state of the law and the current IRS practices. As a first matter, Churches and non-profits have an absolute First Amendment right to speak out on political issues and for or against candidates, however and wherever they choose,…

Read More
  • November 16, 2015

Correcting Retirement Plan Errors: 2015 IRS Guidance Favors Employers

The Internal Revenue Service (IRS) has modified the Employee Plans Compliance Resolution System (EPCRS), which is the IRS correction program for retirement plans. In general, EPCRS allows retirement plan sponsors to correct plan mistakes and continue to provide retirement benefits on a tax-favored basis. It includes self-correction without IRS involvement, voluntary correction with IRS approval, and correction during audit under a closing agreement. The recent modifications to EPCRS are found in Revenue Procedure 2015-27 and Revenue Procedure 2015-8. They are a welcomed relief to employers who have discovered and need to correct past errors. Revenue Procedure 2015-27: Rev. Proc 2015-27…

Read More
  • January 16, 2015

An IRS Tax Audit of Your Business – The Basics

A tax audit is an accounting procedure where the IRS examines your business financial records to make sure you filed your tax return accurately.  If you receive an IRS audit notice, here are the basic steps you can take to assist in resolving the situation. 1. Determine Why Your Return Was Selected For An Audit. It is the IRS’s obligation to inform you as to why your return was selected.  However, you must be diligent in making the inquiry.  Taxes may be audited for several reasons, including: Specific activity on your return, such as cash wages, 1099 and W-2 forms that…

Read More
  • November 18, 2014

Minister’s Housing Allowance Survives Challenge

In a big win for churches and other religious organizations, the United States Court of Appeals for the Seventh Circuit has reversed a District Court decision which had declared the Minister’s Housing Allowance to be unconstitutional. The decision (issued on November 13, 2014) preserves the annual $700 million tax break given to religious organizations and their ministers. The case is Freedom from Religion Foundation, Inc. v. Lew, which arose on appeal from the United States District Court for the Western District of Wisconsin. At issue is Section 107(2) of the Internal Revenue Code, which states that for a “minister of…

Read More
Back To Top