IRS Adjusts 2011 Mileage Rates
WASHINGTON — The Internal Revenue Service today (June 23, 2011) announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a…
Department of Justice Appeals “Multiple Home” Housing Allowance Ruling
On May 24, 2011, the United States Department of Justice appealed the tax court decision made in the Philip Driscoll housing allowance case. In December 2010, the United States Tax Court ruled that clergy could use the parsonage allowance exclusion for two homes as long as they are both used exclusively as personal residences. Related…
Do you need help with finishing extended income tax returns, preparing amended income tax returns, or tax audits?
Now that April 18 has passed, it’s time to focus on finishing extended income tax returns. Some of our readers have found errors in or are uncomfortable with tax returns that they prepared using tax software or were prepared by other tax return preparation companies. We can provide a second opinion. Others have received notices…
Five Tips for Clergy Paying Estimated Taxes
Estimated tax is a method used to pay tax on income that is not subject to withholding. Most clergy are exempt from tax withholdings and FICA. You must pay estimated taxes during the year based on your ministry income. These five tips from Clergy Financial Resources will provide you with a quick look at estimated…
2011 IRS Audit Red Flag for Clergy
Here is a hot spot on clergy returns that can raise the chances of scrutiny by the IRS. Ever wonder why some tax returns are audited by the IRS while most are ignored? Well, there’s a whole host of reasons to this age-old question. The IRS audits only about 1% of all individual tax returns…
President Signs Form 1099 Repeal Legislation – How It Will Affect Churches
On April 14, President Obama signed legislation repealing the Form 1099 filing requirements that were imposed under the Small Business Jobs Act and the Pension Protection and Affordable Care Act. The rules would have required churches to report any purchases of goods or services of more than $600 a year from another vendor to the…
How a Potential Federal Government Shutdown Will Affect the Tax Deadline
The absence of a budget agreement between Congress and the Obama administration could result in a shutdown of some federal government services beginning Saturday, April 9. In the event of a government shutdown, the IRS plans to continue accepting all tax returns, both electronically and paper filed. The IRS has stated that they will continue…
Need More Time to Pay Your Taxes?
Clergy who owe taxes may be relieved to know that there are some options for those who owe and can’t afford to pay the full amount right away. Here are the top 10 things that Clergy Financial Resources wants you to know if you need more time to pay your taxes. Clergy who are unable…
Tax-Time Errors Filers Should Avoid
Mistakes on tax returns mean they take longer to process, which in turn, may cause your refund to arrive later. Clergy Financial Resources cautions against these nine common errors so your refund is timely. Incorrect or missing Social Security Numbers When entering SSNs for anyone listed on your tax return, be sure to enter them…
Using Plastic to Pay Taxes?
Using your credit card to pay your IRS tab at authorized Web sites, such as www.payusatax.com and www.pay1040.com, triggers a charge of up to 2.35% on top of your payment. If your tax bill is $4,000, for example, that’s an additional $94. How to avoid these fees: These vendors are passing along the credit-card processing…
