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Subject:  Re: Charitable Org tax issues Date:  6/13/2005  10:45 AM
Author:  vkg Number:  79678 of 132198

My question is whether or not parishoners of a church are liable for the administrators not following through on filing with the IRS?

The IRS can be more patient with a church than individuals. It is the employees which should be concerned. Those signing the checks that have personal liability and those who withholding and social security payments are being mishandled.

A friend's church was in bad shape. Having had turn over in ministers there was not consistent management. They were in trouble with the IRS and the church hierarchy then a tree limb dropped into the chapel. The building had been declared a historical building and they also had to deal with the historical society plus the insurance company and finding parts of the building had no foundation.

Fortunately, the friend has recently married and his wife is auditor. She was not amused. Payroll was the first item to be handled. It was outsourced which means that games can not be played with withholding and no one in the church is liable for withholding. The IRS contacted them shortly afterwards. Having already turned payroll over to a payroll service bought them some credibility and time with the IRS.


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