Monday, March 19, 2018

Hey Fletch … Someone who is a supposed tax expert emailed me the following letter in response to a question: “If you buy everything you need or want in the name of the church, everything is deductible. As an employee of a corporation, you have no “income.” The church corporation receives the church donations and you are in charge of their dispersion. You own nothing but have the use of everything. You can be the caretaker and draw a salary for it, but as the caretaker the church can supply your food and other needs.” What do you think about what he is saying? Is there any truth in it?

DRF—In looking at his website, he seems to take a position outside of the mainstream. For example, it would be challenging to justify food for your family as a ‘church expenses.’ For a church owned car, the IRS requires that personal mileage be counted as taxable income. I’m not a CPA, but these issues surfaced quickly. If you want to follow his advice, I’d suggest talking to a tax professional so that you will know the consequences with the IRS. Ensure that your actions are in line with your values and that, if needed, you will be willing to go to pay back taxes and penalties, or go prison for tax evasion.