Printer Friendly

IRS rules on ministerial duties.

In Letter Ruling 9231053, the IRS considered whether an ordained minister qualified for the benefits of a tax-free parsonage allowance.

The minister was assigned to an organization for which he spent approximately 75% of his time spiritually counseling alcoholics, drug addicts and their families; 20% of his time on administrative duties; and 5% of his time on traditional duties, such as conducting weddings, funerals and prayer services.

The Service ruled that this individual was not entitled to the benefits of a tax-free housing allowance. The ruling emphasized the traditional definition the IRS places on ministerial duties, namely, the conduct of religious worship or sacerdotal functions.

A number of similar rulings have held that spiritual counseling is not an activity that will qualify as ministerial. Letter Ruling 9231053 once again indicates that organizations employing clergy in nontraditional functions need to be aware of whether they are jeopardizing the individual's eligibility for the tax-free parsonage allowance.
COPYRIGHT 1993 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Author:Boyce, Marc A.
Publication:The Tax Adviser
Article Type:Brief Article
Date:Feb 1, 1993
Previous Article:Management services are taxable.
Next Article:New AICPA position on corporate integration.

Related Articles
Ministerial acts after General Dynamics.
Foreign limited liability companies' classification problems: addressing "continuity of life" under Rev. Rul. 93-4.
Tax-free housing allowances for ministers: documentation is critical to ensure exclusion.
Abatement of interest: new Tax Court rules.
Abatement of interest and penalties on payroll taxes.
Abatement or suspensions of penalties and interest on a tax deficiency.
The clergy's unique tax issues.
Delay in Civil Case While Criminal Investigation Was Pending Was Not Ministerial Act.
Misidentification noted.
Clergy housing allowances: IRS loses battle, wins war.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters