IRA distributions are treated differently for tax purposes (for the donor) and should not be lumped together with regular contributions. This document provides more information about how to acknowledge those […]
taxes
How does our church determine what mileage should be reimbursed for our pastor?
The primary concern in this issue is where is the pastor’s primary work location? Home office: If the primary location is a home office, then all business mileage from that home office […]
Is my church exempt from paying state sales tax?
North Carolina law does not exempt nonprofit organizations from payment of sales and use tax on items they purchase for use. However, G.S. 105-164.14(b) provides for semiannual refunds of sales […]
What should our church include in the year-end statements we send to our donors?
Churches sending acknowledgement letters to their donors should remember the following substantiation requirements held by the IRS. Please reference IRS Publication 1771 for more information on record keeping rules and what to include in […]
Do we need to have W-9 forms on file for all of our vendors?
While Congress has repealed the expansion of the 1099-MISC reporting beyond unincorporated business through the passing of a bill titled H.R. 4 (for more information, see “President Signs Repeal of Expanded 1099 […]
Our members have given tithes and offerings in January that are dated for December of the previous year. Should these contributions be included in last year’s tax statement?
No, a check received in January should be considered a current year contribution. According to the IRS, contributions should be deducted in the year delivered. If a check is hand […]