Arken

This was brought up on a local forum I frequent.

From the IRS publication Tax Guide for Churches and Religious Organizations which may be found at http://www.irs.gov/pub/irs-pdf/p1828.pdf

The IRC in total can be found on this website: http://www.fourmilab.ch/ustax/www/contents.html

Now, I am not an accountant. I do not know the tax code. But with a document so vast, I find it difficult to believe that churches are always compliant with it. Does anyone know whether some or even most churches are not in compliance with portions of the IRC and if so, which portions?

Toto

My impression is that enforcement is a bit lenient. The American tax system depends on "voluntary compliance" and the IRS has only a limited amount of power. It's like any other part of the tax code.

Churches have to avoid political endorsements to retain their tax status, and periodically Americans United for Separation of Church and State complains about churches that distribute the Christian Coalition's Voter Guide, while Pat Robertson's ACLJ tries to find loopholes.

You also periodically hear about the IRS cracking down on a particularly egregious case, such as the minister who got a large part of his generous salary as a tax exempt "housing allowance."

john_v_h

For one thing, churches cannot charge admission nor can they permit any other person to do so. That's why a musical group which performs at a church advertises "suggested donation" instead of "ticket price." I think this may have more to do with property tax than income tax.

Toto

Is this a rule anywhere or just a practice? I know some events held in churches do charge admission.

john_v_h

As a performer at Bay area churches, I have run into this rule. I don't know for certain if it is a governmental rule (at any scope) or just a practice recommended by church counsel. But for example, a group I was in had to change an advertisement at the last minute to omit mention of any "price."

In reply to the OP, Section 503b seems pertinent with its list of no-nos.