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Payroll Tax Cut Like to Expire

As you may recall, last year a payroll tax holiday was passed by Congress lowering the amount of Social Security tax paid by employees making less than $110,000 from 6.2% to 4.2%.  This tax cut is set to expire at year end and it seems unlikely that it will be...

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Your Choice of Delivery Service Matters

The Tax Court has ruled that your choice of delivery service to the IRS does indeed matter.  In a recent the case (Scaggs, T.C. Memo. 2012-258), the court ruled that using FedEx Express Saver Third Business Day was not an approved method of private delivery service...

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Taxpayer Advocate Service Changes Case Criteria

Per its own website, the Taxpayer Advocate Service (TAS) is an independent organization within the IRS that exists to help taxpayers resolve problems with the IRS and recommend changes that will prevent future problems.  TAS is designed to be a "safety net" for...

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The importance of donor letters

Just how important are those end of year donor letters and statements that charitable organizations send? Very important, according to the IRS. In a recent case, courts disallowed a charitable contribution deduction for a donor because of a defective donor letter sent...

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Are love offerings taxable to the recipient?

Churches sometimes collect “love offerings” from the congregation for a pastor to honor and bless the individual for their service to the church. When the collected funds are given to the pastor, they must be reported as taxable income. If the recipient is an...

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Fun with FICA tax!

One confusing area of church payroll is how to handle Social Security & Medicare taxes for Ordained/Licensed ministers.  Ordained/Licensed ministers are considered to be self-employed when it comes to their income from the church.  This means that churches are not...

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