Recent Articles

New York Limits Charitable Deductions

Jeramie Fortenberry
September 13, 2010 15:00

The Chronicle of Philanthropy has reported on a recent New York law that limits the amount that high earners can deduct for contributions to charity.  For New York state income tax purposes, taxpayers with more than $10 million in annual gross income can only deduct 25 percent of their...

Judge Allows Parsonage Exclusion Suit to Proceed

Jeramie Fortenberry
August 30, 2010 14:00

A federal judge recently denied a motion by the U.S. Department of Treasury to dismiss a constitutional challenge to the parsonage exclusion.  The so-called parsonage exclusion comes from Section 107 of the Internal Revenue Code.  It allows ministers to avoid taxes on income that is...

Recent Decision Casts Doubt on Virtual Worship as a Qualifying Church Activity

Jeramie Fortenberry
August 16, 2010 14:00

The U.S. Court of Appeals for the Federal Circuit has rejected a taxpayer’s argument that the regular assembly of a “virtual congregation” was enough to meet the IRS definition of a church. The ruling could have implications for virtual churches that conduct worship through...

IRS Gives Small Charities Another Chance to Meet Filing Requirements

Jeramie Fortenberry
August 11, 2010 12:00

There’s been a lot of buzz in the nonprofit sector about the new law requiring small nonprofits to file annual informational returns.  The IRS will automatically revoke the exemption of organizations that fail to file these returns for three consecutive years. To give these organizations...

What is a Church? Tests for Church Status Under Tax Laws

Jeramie Fortenberry
August 09, 2010 14:00

The Intersection of the First Amendment and the Internal Revenue Code Raises Challenges Courts have long recognized that the First Amendment raises sensitive questions regarding the government’s ability to tax religious institutions.  Since colonial times, American churches have enjoyed...