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Showing posts from March, 2017

Special Topic: A Great Cloud of Witnesses, John Newton

John Newton: From Disgrace to Amazing Grace by Jonathan Aitken, 2007, Crossway Books, ISBN 978-1-58134-848-4
Follow link for an Introduction to the Cloud of Witnesses series

In his biography of John Newton, Jonathan Aitken colors a canvas with broad strokes of a physical life and spiritual influence enabled and preserved by the grace of God. Drawn from an apparent deep study of both long-available and recently accessible origin archives of Newton’s life, Aitken explores the sea captain turned preacher’s troughs and peaks while leaving the reader wanting more but appreciating the concise and enriching overview.

Amazing Grace, how sweet the sound,
That saved a wretch like me.
I once was lost but now I'm found,
Was blind, but now I see.

Untiringly rebellious from his youth, Newton brought grief to his parents and employersalike. Born July 24, 1725, to Captain John and Elizabeth Newton of London, young John lost his mother and spiritual mentor when he was not quite seven years old. She taught…

Gifts Paid Out of Church Funds: Form 1099-MISC Requirements

Question:
 A church gave a wedding gift of $1000 to a couple who are church members. No goods or services were provided by the couple in exchange for the gift.  Is a Form 1099-MISC required? 
Answer: In the following answer, we assume that the couple are not employees of the church from whom the gift could not be viewed as compensation for their services. Also, the amount seems to be small enough to avoid any concerns of "private inurement."

Accordingly, no Form 1099-MISC is required. According to the 2017 IRS Instructions for Form 1099-MISC a Form 1099-MISC is only required for payment of goods or services. The requirements are as follows:
"File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:  At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);  At least $600 in:  1. Rents (box 1);  2. Services performed by someone who is not your …

Paying Health Insurance Premiums for an Independent Contractor

Question:

A church treats it's missionary as a Form 1099-MISC independent contractor. The church is considering directly paying health insurance premiums on the missionary's behalf.  If he were an employee these payments would be considered a fringe benefit and be excluded from his income. However, because he is an independent contractor, is the church required to include the amount paid somewhere on his Form 1099-MISC. IRS publications seem to only be referring to employees in the exclusion sections. How and where would the church report these payments?


Answer:

According to IRS Publication 15-B, "A fringe benefit is a form of pay for the performance of services. ... A person who performs services for you doesn't have to be your employee. A person may perform services for you as an independent contractor, partner, or director."

But in order to exclude payments for health insurance from income, the payments must be made to an employee (IRS Pub. 15-B).

If an independent…

Special Topic: A Great Cloud of Witnesses, Introduction to the Series

A Great Cloud of Witnesses by Corey Pfaffe The writer of the book of Hebrews followed his Hall of Faith chapter with these words: Wherefore seeing we also are compassed about with so great a cloud of witnesses, let us lay aside every weight, and the sin which doth so easily beset us, and let us run with patience the race that is set before us, Looking unto Jesus the author and finisher of our faith; who for the joy that was set before him endured the cross, despising the shame, and is set down at the right hand of the throne of God (Hebrews 12.1-2). Like the first Century Christians, we have our own modern day GreatCloud of Witnesses. They are the men and women upon whose devotion we stand. As 21st Century Christians, these witnesses strengthen and encourage usto fully submit to God’s work in our lives and to respond to the eternal motivation He has placed before us—eternal life with our Heavenly Father in gratitude for the simple uses He made of our earthly days. Authors of Christian bio…