Selecting a tax advisor or accounting firm may seem easy at first. There are two types of professional services within our industry.
The first type is called a “Generalist”, which prepares any and all returns for the public at large. They may have a limited number of clergy returns or none at all. They do not provide adequate guidance and knowledge relating to clergy tax law, ministers’ compensation, PARP, housing, pension accounts, W-2 forms, etc. Often, they need to research or reacquaint themselves with clergy tax laws every time they file a clergy return.
The second type is called a “Specialist”- A Specialist has a focus on clergy tax law and provides services exclusively to that group.
Clergy Financial Resources is a “Specialist” within the industry and has provided tax services and support exclusively to ministers since 1980. We understand that ministers are treated differently under the tax code than anyone else in the country and have advantages and disadvantages. Without even knowing it, you may be losing out on the best tax filing strategies.
– Our knowledge, experience, and approach are what sets our firm apart –
When selecting an advisor or firm to prepare your 1040 return, consider asking them:
- Approximately how many clergy clients do you have a year?
- Do you calculate estimated payments?
- Can you help with optional withholdings?
- Should I opt out of social security?
- Can I deduct ministry expenses?
- Is there a limit on housing allowance?
- How does the housing/parsonage allowance works?
- Are you familiar with section 107 of the Internal Revenue Code? Can you explain it to me?
These are fairly basic questions that a clergy tax advisor should be able to answer off-the-cuff. If your advisor does not know these answers, they may not be the right fit and may be unable to easily help you if the IRS questions your return.
Our Annual Tax Service is uniquely designed and bundled with three valuable services; Clergy Support which provides answers to your questions and guidance throughout the year; tax preparation to ensure compliance while minimizing your tax liability; Estimated Payment Support to prevent those unwanted surprises. The Annual Tax Service starts as low as $300.00. The actual cost may vary and is based on each person’s complexity.
The rules are constantly changing, we will sort out the questions and simplify your tax return and do all the tedious work that eats up your valuable time. Need to file? There is still time to file before the extended tax deadline of July 15, 2020.
If you are looking for a new tax advisor for your 2019 return, or if you are trying to catch up on earlier years, CFR is available to help. Visit our website at https://www.clergytaxnet.com/services/clergy-tax-preparation/
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101