Did you know that IRS announced that it is starting 2,000 intensive payroll tax exams starting 11-25-09? The IRS is employing 200-300 agents for this examination project.
The IRS will look at employee versus contract labor, taxable versus nontaxable fringe benefits, whether employee expense reimbursement plans qualify for tax free reimbursements and whether the employees submitted the proper documentation, whether highly compensated employees reported the correct amount of income and whether any employees failed to file their personal income tax returns.
When was the last time you had a good tax professional review these areas? Prov. 24:5-6 contains the best advice for churches and ministries to follow.
I spend 95% of my professional time representing nonprofit organizations, with the majority of my clients coming from the religious and faith communities. After more than 34 years of observing and serving the nonprofit world, I thought some might find my thoughts useful.