FRAUD
Each year, the amount of money stolen from churches exceeds what churches give to missions. Let that sink in. 30% of churches are the victim of fraud/embezzlement each year. Most is never detected and when it is, 80% does not get reported to law enforcement. The loss was $39 billion in 2014 and expected to […]
Unreimbursed Employee Expenses
The Tax Cuts and Jobs Act of 2017 eliminated the deduction for unreimbursed employee expenses, however, for most ministers, it still pays to keep track of them. While the law did remove this schedule A deduction for employees, there is an exception for licensed ministers. Unreimbursed employee expenses incurred by minsters are deducted on Schedule […]
Form 1099-NEC or Form 1099-MISC?
Historically, when you have paid $600 or more during a year to a nonemployee, you were required to file form 1099-MISC (using box 7) by January 31 of the following year. This would include anyone who performed a service (non-employee compensation) for the business or church (independent contractors, guest speakers, etc.). Beginning in 2020, the […]
Important Changes To PPP Loan Forgiveness
I have waited to send out an update pending the changes expected to be implemented by Congress and the SBA. Last night, the senate passed the bill previously passed by the House, and is awaiting signature by President Trump. While it is expected that the SBA will issue an FAQ to further clarify certain areas, […]
Still The Same
Much has been written regarding the CARES Act and the PPP loan & EIDL programs. I have updated the original summary of these programs on our website multiple times as the rules continue to change. While these are certainly unusual times, our advice remains the same as it has for over two decades. For the […]
Parking Tax Repealed
In late 2018, we wrote about a new tax that churches had to pay on certain fringe benefits, including parking provided to employees. The law even impacted some churches who had reserved spots for employees in the church parking lot, subject to certain calculations. Fortunately, in December 2019 this part of the law was repealed, […]
Tax Refunds
75% of Americans received a refund last year, with an average refund of $2,881. You’ve heard it before but let me remind you – getting a refund is essentially giving the government an interest free loan. Many use a large refund as a way to set aside money for a large purchase or to pay […]
2020 Mileage Rates and HSA Limits
The IRS has released the new mileage reimbursement rates for 2020. For business related travel, the new rate is $0.575 per mile (down from $0.58 last year). Driving for medical may be deducted at $0.17/mile (down from $0.20 in 2019) and mileage for service to a charitable organization is unchanged at $0.14/mile. Mileage for moving […]
2020 Retirement Contribution Limits
The Treasury Department has announced the 2020 limits for retirement accounts: The amount you can contribute to your 401(k), 403(b) or similar retirement plans goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older—will be $6,500 for workplace plans, up from $6,000. Those 50 years or […]
Tax Scams
Tax scams run year-round. You may receive a telephone call claiming to be someone from the IRS. The call usually includes a threat that the police are on their way to arrest you, unless you pay immediately using a debit or prepaid card. They may also ask for your banking information so that you can […]