Does my church need to issue 1099s?

Form W-9

Who gets a 1099?

How do you prepare for and print 1099s in PowerChurch?

For answers to these questions and additional assistance as you prepare for the upcoming tax season click here.

Who is an Independent Contractor is one of the basic laws that are misunderstood by the business and church world of today. When looking at this matter, please refer to the “Employer’s Supplemental Tax Guide IRS Publication 15-A” at www.irs.gov .

The Publication 15A refers to the 20 common law rules that determine the common law relationship of the worker and the business, church or nonprofit. In any employee-independent contractor determination, all information that provides evidence of the degree of control and independence must be considered. The factors that provide the evidence of the degree and control and independence fall into three categories: Behavioral Control, Financial Control, and Relationship. (read more)

Congress is headed towards an epic battle over sun setting tax rules, already expired tax breaks, and soon-to-expire tax breaks, and it looks as if the dust won't settle until late this year. A reasonable scenario would be for Congress to “buy itself time” to formulate a comprehensive tax reform plan by deferring the sunsets for another year, possibly with some modifications, patching the alternative minimum tax (AMT) again for another year, and extending core expired or expiring tax provisions. A “reasonable” solution may not prevail. Thus, it would seem that the wisest contingency plan for tax payers would be, where possible, to plan for both best and worst case scenarios and then settle on a course of action when the legislative picture is clear. To help you get a better handle on what's at stake; click here to view a scorecard of what will change after 2012 under current law, if Congress doesn't take action.

Summit Tax & Accounting, LLC conducts several seminars each year that work to provide comprehensive and timely information in an understandable format for religious and nonprofit organizations and businesses. Click here for a list of seminars scheduled for 2013.