Question:
A pastor has taken the responsibility
of preparing his own Form 1099-MISC reporting his earnings from the church
congregation he serves. Is this not the responsibility of the church itself?
Answer:
First, since a minister is a dual
status employee (see http://ministrycpa.blogspot.com/2012/10/review-of-form-w-2-reporting-for.html for
information concerning dual status), he is an employee in every respect except
for withholding, and therefore he should be issued a Form W-2.
Second, the church is responsible for
what is reported on the Form W-2 and should be preparing it. The church also
has the responsibility of correctly identifying his taxable and
nontaxable income. Accordingly the pastor should definitely not prepare his own
information return.
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