2021 Clergy Tax Guide Available Now

For clergy personal income tax returns:

• 2021 Clergy Tax Return Preparation Guide for 2020 Returns
• CPG Supplement to the 2021 Clergy Tax Return Preparation Guide
• 2021 CPF Form B

2021 Federal Reporting Requirements

The guidelines for administrators are now available.

• 2021 Federal Reporting Requirements for Episcopal Churches

Clergy Housing Ruling

On March 15, 2019, in Gaylor v. Mnuchin the Seventh Circuit Court of Appeals upheld the constitutionality of the clergy housing allowance set forth in section 107(2) of the Internal Revenue Code (the “Code”). That section allows certain religious leaders to exempt church-approved housing allowances from their taxable income.

The decision by the three-judge panel was unanimous, thus putting at ease for the moment the concerns of thousands of ministers and other religious leaders.

• Download the Church Alliance summary of the ruling, or visit Church Alliance for more information

Parking Tax Update

Unrelated Business Income Tax on Transportation Fringe Benefits Retroactively Repealed – Potential Refund Opportunity

Beginning in 2018, the unrelated business taxable income (“UBTI”) of tax-exempt organizations was increased by the amount an organization paid or incurred for any qualified transportation fringe benefits or any parking facility used in connection with qualified parking. As such, providing this benefit to your employees may have resulted in a tax filing obligation on a Form 990-T and a liability for UBIT.

Fortunately, the government funding bill passed on December 20, 2019 retroactively repealed this tax provision thereby eliminating the inclusion of qualified transportation fringe benefits when determining unrelated business income of tax-exempt organizations. Therefore, tax-exempt organizations that previously filed Form 990-T and paid UBIT under this tax provision should determine the best approach for obtaining a refund of any UBIT paid.