Are religious fulltime job illegal according to this IRC??

  • Creator
    Topic
  • August 7, 2015 at 11:34 pm #195964
    Oneday
    Participant

    IRC Section 501(c)(3) states that “No part of the (Tax-exempt, religious) organization’s net earnings will inure to the benefit of any private shareholder or individual.”

    Does this mean people like pastors who are getting paid from church are illegal?

    If someone could help me better understand this quote, it’d really help.

    Thanks!

Viewing 5 replies - 1 through 5 (of 5 total)
  • Author
    Replies
  • August 7, 2015 at 11:43 pm #686272
    TaxGod
    Participant

    You should ask Creflo Dollar's tax accountant that question, he could answer it best.

    AUD: 02/28/15 - 89
    FAR: 05/29/15 - 80
    BEC: 08/03/15 - 81
    REG: 08/27/15 - 76

    August 7, 2015 at 11:49 pm #686273
    JohnWayneIsGod
    Participant

    Net earnings is like Net Income, and a pastor's wages come from gross revenue (or collections). So when followed to the letter, it is legal for a pastor to collect a paycheck. Further, the implied intent is that the IRS doesn't want the founder of a non-profit to treat the 501c3 as an investment. Think Net Income going into Retained Earnings leading into dividends. The IRS doesn't want that, hence ‘net earnings' and ‘shareholders' being mentioned.

    FAR - 80

    Courage is being scared to death, but saddling up anyway.

    -John Wayne

    August 8, 2015 at 2:51 am #686274
    Oneday
    Participant

    Taxgod// lol i assume that was a joke and its a good one

    JohnWayneIsGod// Thank you for thorough answer! Something that's troubling me is that the above code's wording include “Individual” as well. Distinguishing from “shareholder”… I assume there are some controversy over this in real life?

    Also, its quite interesting both of your screen name include “god” lol

    I hope this question doesn't offend anyone; I was just solving some Ninja MCQ and a related topic came up and had trouble grasping this IRC. I thought relating to real life would help me learn the code and may be something more.

    August 8, 2015 at 7:54 pm #686275
    JohnWayneIsGod
    Participant

    Some good reading would be Jim Bakker's legal troubles in the 80s and the fallout that occurred with the then non-profit registered PTL Satellite Network. What Bakker did is what the IRS doesn't allow. As you'll see, there is a difference between Bakker's actions and a pastor drawing a paycheck.

    Ha! Funny. I didn't notice that we have two ‘Gods' commenting on a religion post till now.

    FAR - 80

    Courage is being scared to death, but saddling up anyway.

    -John Wayne

    August 8, 2015 at 8:05 pm #686276
    TaxGod
    Participant

    We both know our calling!

    AUD: 02/28/15 - 89
    FAR: 05/29/15 - 80
    BEC: 08/03/15 - 81
    REG: 08/27/15 - 76

  • Author
    Replies
Viewing 5 replies - 1 through 5 (of 5 total)
  • The topic ‘Are religious fulltime job illegal according to this IRC??’ is closed to new replies.