CHAPTER I: MISCONCEPTIONS ABOUT A CHURCH’S TAX-EXEMPT STATUS

CHAPTER II: AN INTRODUCTION TO FEDERAL TAX EXEMPTION
Qualified Religious Organizations
Qualified Churches
Qualified Integrated Auxiliaries
Benefits of Recognition as a Qualified ‘Church’

CHAPTER III: QUALIFYING CRITERIA FOR TAX EXEMPT STATUS
Churches Must Be ‘Organized Exclusively’ for Religious or Other Exempt Purpose
Group Exemptions Where Parent Church or Affiliate Fails to Qualify
Churches Must Be ‘Operated Exclusively’ for Religious or Other Exempt Purposes
Churches Must Serve a Public Benefit
Churches May Not Confer a ‘Substantial’ Private Economic Benefit
Churches May Not Engage in Unlawful Activities or Violations of Public Policy
Churches Cannot Be Operated for a ‘Substantial’ Non-Exempt Purpose
No Part of a Church’s ‘Net Earnings’ May Inure to the Benefit Insiders
Prohibition Against ‘Substantial’ Lobbying-Influencing Legislation
Absolute Prohibition Against Partisan Political Campaign Activities

CHAPTER IV: FINANCIAL CONSEQUENCES OF DENIAL OR LOSS OF EXEMPT STATUS
Financial Consequences to Church
Financial Consequences to Church Leaders
Financial Consequences to Contributors if Charitable Deduction Disallowed

CHAPTER V: COMMON SLIP-UPS OF NEW CHURCHES AND NON-DENOMINATIONAL CHURCHES

CHAPTER VI: CHURCH AUDIT TO DETERMINE TAX-EXEMPT STATUS OR ASSESS TAXES

CHAPTER VII: STATUTE OF LIMITATIONS FOR REVOCATION OF TAX-EXEMPTION AND UBIT ASSESSMENTS

CHAPTER VIII: ABUSE OF CLERGY HOUSING ALLOWANCE
Who Can Qualify? – Only a Qualified Minister of the Gospel
What Compensation Can Qualify? – Compensation for Ministry Services
How Much Compensation Can Qualify? – Only that which is Reasonable
What Housing Expenditures Qualify? –Ordinary & Reasonable Expenditures
Is the Housing Allowance Tax Free? – Not Necessarily

CHAPTER IX: MISCLASSIFICATION OF PASTOR’S EMPLOYMENT STATUS
An Introduction to Clergy’s Dual Tax Status
Criteria for Employee or Self-Employed
Benefits to Employee Status For Ministers

CHAPTER X: UNREPORTED LOVE OFFERINGS AND GIFTS
Love Offerings: Taxable or Not?

CHAPTER XI: UNREPORTED PAYMENTS- 1099-MISC ISSUES
1099-MISC Reporting Requirement Defined
Common Pitfalls of 1099-MISC Reporting
Miscellaneous Issues

CHAPTER XII: IMPROPER USE OF BENEVOLENCE FUNDS
Benevolence Defined as Necessities of Life
Constructive Receipt & Benevolence Reporting Requirements
Donor Deductibility Issues re Designated Gifts

CHAPTER XIII: FAILING TO REMIT PAYROLL TAXES
Church Leaders May Be Personally Liable for Unpaid Payroll Taxes
Withholding Basics
Church Leaders Who Willfully Fail to Pay Payroll Taxes May Be Penalized

CHAPTER XIV: VIOLATIONS OF IRS GUIDELINES– EXPENSE REIMBURSEMENTS
Accountable Reimbursement Plan – The Basics
Returning Excess Reimbursements
Special Rules for Certain Expenses including Listed Property
Special Rule For Mileage Reimbursements

CHAPTER XV: UNPAID UNRELATED BUSINESS INCOME TAXES (UBIT)
Introduction to UBIT
UBIT Defined
Is Business Activity “Not Substantially Related” to Exempt Purpose?
Is Activity a “Trade or Business”?
Is Activity “Regularly Carried On”?
Exclusions from UBIT
Conclusion To UBIT

CHAPTER XVI: PROTECTING YOUR CHURCH

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