Church Law & Tax Update Newsletter

Plus: Avoiding Tax Pitfalls | View online

Tuesday, March 3, 2020

Hiring Help to Complete Clergy Taxes

Tax-filing season is in full swing, and with April 15 coming into view, the pressure to complete a return or file an extension only grows by the day.

Do you or a fellow pastor or church staff member need help preparing a return? That’s understandable, considering the sheer complexity of the federal tax system (as this roadmap released last year shows). Factor in the unique elements involved with the tax treatment of ministers in particular, and the complexity only grows.

Fortunately, you’re not alone in this journey. Attorney and CPA Richard Hammar’s 2020 Church & Clergy Tax Guide is a comprehensive companion. But if more hands-on guidance is needed, we’ve got tips and guidance for seeking outside assistance:

How to select a CPA or attorney to get complex tax questions answered; and
Why IRS-accredited Enrolled Agents can be a valuable—and cost-effective—option for tax preparation.

Taxes can be taxing—but our prayer is that these articles and resources help you navigate this current filing season as smoothly as possible.

Also this week:

We’ve gathered explanations, insights, and tips on unrelated business income to help make this important topic as easy to understand as possible.
Help us better understand sexual harassment in the workplace through this survey as we aim to help church leaders address and prevent it.
Take this free assessment to see how prepared you are for avoiding common tax-related mistakes.

The Lord bless you and keep you,

Matthew Branaugh
Editor, Content and Business Development, Church Law & Tax

Tips on Selecting a Tax Preparer

Choose a person with experience preparing ministers' tax returns.

Richard R. Hammar

Let’s assume you’ve decided to have your tax return prepared by a professional. The next step is to find someone who is experienced and competent in the preparation of ministers’ tax returns. Here are some tips to help you find such a person:

If possible, stick with a CPA or tax attorney. These professionals have completed a rigorous educational program, passed a difficult qualifying examination, and are subject to a comprehensive body of professional ethics.

Another Option for Tax Preparation: Enrolled Agents

They cost less and are certified by the IRS. But they still need to be vetted before hiring.

Matthew Branaugh

Pastors and church leaders often ask accountants and attorneys to help prepare their taxes but may overlook another tax preparer worth considering: the enrolled agent (EA). The EA is the highest credential given by the Internal Revenue Service (IRS), and it is earned either by passing a comprehensive ...

Resources

2020 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.

Setting a Pastor's Pay

Richard Hammar explains legal and tax matters for planning a pastor's compensation.

Church Finance

Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.

Vital coverage of critical developments, news, insights, and resources about legal and tax matters affecting churches, clergy, staff, and volunteers nationwide.

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