EVENT DESCRIPTION
Ministers are subject to some of the most complex tax rules in the Internal Revenue Code, including dual tax status, housing allowance exclusions, and unique income reporting requirements. These complexities often create compliance challenges that can increase the likelihood of IRS scrutiny when returns are not prepared correctly.
This course provides tax professionals with a practical understanding of the IRS audit issues most commonly associated with clergy tax returns. Using guidance from the IRS Ministers Audit Technique Guide, participants will explore the key areas examiners focus on during audits, including housing allowance documentation, ministerial income classification, expense substantiation, and self-employment tax considerations.
Attendees will learn how to identify common audit triggers, implement best practices for recordkeeping and tax return preparation, and navigate recent OBBBA Act changes affecting clergy taxation. Through real-world examples and case studies, participants will gain the tools needed to prepare accurate minister tax returns, reduce audit risk, and confidently advise clergy clients on compliance matters.
EVENT OBJECTIVE
Upon completion of this course, participants will be able to:
• Explain the unique tax rules and reporting requirements applicable to ministers and clergy.
• Review the IRS Ministers Audit Technique Guide and identify its primary examination focus areas.
• Recognize common audit triggers related to clergy income, expenses, and housing allowance reporting.
• Differentiate between taxable and non-taxable ministerial compensation and benefits.
• Apply documentation and substantiation requirements to support clergy deductions and exclusions.
• Evaluate dual tax status rules and their impact on minister tax filings.
• Analyze recent OBBBA Act provisions affecting clergy tax reporting and compliance.
Implement best practices to reduce audit risk and improve the accuracy of minister tax returns.
