Tax season is here: a time when churches must prepare forms such as W-2s for employees and should provide givers with written acknowledgments of tax-deductible tithes and offerings.
In addition, the filing of annual tax returns by ministers and other taxpayers is due by April 15.
The Alabama Baptist State Board of Missions (SBOM) provides conferencing and other resources for churches and ministers dealing with tax-related deadlines.
During January, State Missionary Lee Wright taught annual Church Tax Conferences, helping more than 200 churches prepare to file W-3s, 941s and other tax documents required to ensure a church can keep its tax-exempt status.
“Churches, ministers and other employees can be held liable if taxes are filed incorrectly,” Wright said. “Fines to employees individually or to the church can be 225 percent of the amount not reported. Also, churches can be at risk for losing tax-exempt status, which would likely prompt many churches to close.”
One issue that will impact many ministers is the loss of the Employee Unreimbursed Business Expense as tax-deductible on Schedule A of Federal Form 1040.
Wright explained that ministers are no longer able to deduct unreimbursed church expenses on annual tax returns.
Wright will teach these identical Minister’s Tax Conferences, each lasting from 9 a.m to 12 noon:
- 2/5: SBOM Facility, 1404 Fairview Ave., Prattville
- 2/12: Woodward Avenue Baptist Church, 801 Woodward Ave., Muscle Shoals
- 2/14: Tennessee River Baptist Association, 27149 John T. Reid Pkwy., Scottsboro
- 2/19: Northport Baptist Church, 1004 Main Ave., Northport
- 2/21: Calhoun Baptist Association, 1130 Woodstock Ave., Anniston
- 2/28: First Baptist Church, 700 E. Three Notch St., Andalusia
“When we think of stewardship, we often only think of tithing, but I think taxes are a part of that too,” he said. “Churches and ministers need to be good stewards of all God has given them.”