Tax Issues of Religious Organizations (Portfolio 484)
Tax Issues of Religious Organizations focuses primarily on the federal income tax issues affecting religious organizations, their donors, and members. Where appropriate, it briefly discusses other federal tax areas, such as the estate tax, social security tax, and the unemployment tax.
Tax Management Portfolio, Tax Issues of Religious Organizations, No. 484, focuses primarily on the federal income tax issues affecting religious organizations, their donors, and members. Where appropriate, it briefly discusses other federal tax areas, such as the estate tax, social security tax, and the unemployment tax.
Because the religion clauses — the Establishment Clause and the Free Exercise Clause — of the First Amendment of the United States Constitution affect the government’s interactions with religious organizations, the Portfolio discusses the intersection of the First Amendment protections for religious organizations and governmental aid and taxing interventions.
The Portfolio includes discussions of a range of relevant definitions for federal tax purposes, including the definitions of “religious organization,” “church,” and “integrated auxiliary of a church.” It explains how a religious organization may seek tax-exempt status and discusses the requirements that must be satisfied to obtain and retain tax-exempt status. It sets out the rules for taxing unrelated business taxable income of religious organizations. It explains the intermediate sanction rules and their potential application. It addresses the disclosure rules and audit rules applicable to religious organizations.
Compensation issues and benefits for employees and members of religious orders are addressed. Donors’ entitlement to charitable contribution deductions are analyzed.
This Portfolio may be cited as Crimm, 484 T.M., Tax Issues of Religious Organizations.
Table of Contents
II. First Amendment’s Religion Clauses
III. Defining “Religious Organization” and“Church”
IV. Seeking Recognition of Tax-Exempt Status
V. The Federal Income Tax Exemption for Religious Organizations — § 501(c)(3)
VI. Political Activities Prohibitions
VII. Public Policy Doctrine
III. Section 4958 — Intermediate Sanctions
IX. Unrelated Business Income Tax
X. Tax Benefits of Clergy
XI. Tax Benefits to Members of Religious Orders
XII. Charitable Contribution Deduction
XIII. Tax-Exempt Bond Issuance for the Benefit of Sectarian Institutions
XIV. The Internet and Tax-Exempt Religious Organizations
Speiser Krause Nolan & Granito
Professor of Law
St. John's University