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Clergy Tax Service

Clergy Tax Service

August 14, 2019

Clergy Tax Service 

Just like every other profession, pastors, priests, ministers of the gospel and clergymen are mandated by federal and state tax laws to properly file and pay their clergy taxes to avoid going through a dreaded IRS or state tax audits. Do not fall under the hammer of the Internal Revenue Service, it is important that clergy understand the complexities involved during the tax planning and tax preparation process. Preparing for your clergy tax returns is without doubt an arduous and stressing task. Even the slightest mistake can cost a lot of time and money.

As a minister/clergy, you are subjected to a dual status tax treatment. The two statuses are summarized as follows:

  1. Social Security: Under this tax code, pastors, clergymen and ministers of the gospel are treated as self-employed individuals even if they have previously reported their income tax in the same manner as an employee would. In simple terms, ministers are required to pay Social Security tax which often takes the form of self-employment taxes. To be exempted from this rule, you will have to obtain and fill form 4361, and then take it to IRS for approval. The criteria for this exemption is quite strict and only very few ministers manage to scale through.
  2. Income Taxes: When reporting their taxes, clergymen and women are most times required by IRS to report as employees with W2 income. Before processing their tax, they will have to obtain and fill form W4 with the employing church. However, interim pastors and some traveling evangelists are exempted from this because they are considered as self-employed. In such case, they will have to file their tax under 1099 self-employed.

Clergy tax services available include:

  • Back tax help
  • Installment agreements and tax settlements - offer in compromise
  • IRS tax lien release and or withdrawal
  • 941 employment payroll tax
  • IRS or state wage garnishment or bank levy release
  • Tax negotiation and resolution
  • IRS appeal
  • IRS audit representation or reconsideration for older audits
  • And so much more

Call us today for reliable clergy tax service help at 1-816-220-2001.

Why Work with an Enrolled Agent?

To sort your tax challenges in a quick an efficient manner, you need the help of an experienced Enrolled Agent with expertise in tax preparation, clergy tax issues and tax representation. By so doing, you would be able to make good use of your valuable time performing ministry work. EAs or enrolled agents are licensed directly by the IRS and can work with taxpayers in all 50 states with no restrictions unlike CPAs and tax attorneys who are limited to their respective states.

Call us today for Clergy tax services help at 1-816-220-2001