LEGAL
LEGAL UPDATE FROM BOB RAMPI Nov. 13, 2012
U.S. Supreme Court Denies Driscoll Cert Petition
The U.S. Supreme Court denied Phil Driscoll’s petition for certiorari in his appeal arguing that ministers may be entitled to more than one housing allowance from a church or ministry employer under Internal Revenue Code Section 107. With the opportunity for appeal now denied in the case, the Eleventh Circuit’s interpretation will stand as precedent that Congress intended for the ministers’ housing allowance exclusion to apply to only one home.
Issuance of First Commission Report Nears
The first report of the Commission on Accountability and Policy for Religious Organizations is scheduled for release to Senator Charles Grassley, member of the Senate Finance Committee, for early December 2012.
The initial report, culminating from the work of these 80 nationally-recognized professionals, will cover all of the issues under consideration (housing allowance, love offerings, compensation of nonprofit leaders, church reporting to the IRS, and more!) except the political activity issue. This topic will be covered in a separate Commission report in 2013.
The reports will be prepared in both bound and electronic formats and will be widely available. Stay tuned!
“Online Ministry” Denied Recognition of Church Tax Exemption
In a recent private letter ruling, the IRS rejected an application for recognition of church tax-exempt status by a self-described “online ministry.”
IRS Announces 2013 Pension Plan Limitations; Taxpayers May Contribute up to $17,500 to their 401(k) plans in 2013
The Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013.
Cost-of-Living Increases Projected for 2013 Tax Year
RIA has just released its calculations concerning a number of important tax provisions for 2013. These figures are adjusted each year for inflation based on cost-of-living increases reflected in the Consumer Price Index. 2013 Federal estate tax exclusion reduced to 1m from 5.12m, Gift tax exclusion $14k, foreign earned income exclusion 97.6k.
Important Healthcare Law Deadlines for Nonprofits
W-2 reporting in 2012 for large employers. 2013 & 2014 other Healthcare Law implemented.
Wheaton Healthcare Suit Dismissed Following New Safe Harbor
Wheaton College, an ECFA member, made headlines this July for filing suit against what some critics in the faith community have dubbed the “contraception/abortifacient mandate” of the new health care law.