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The Majority of Income Taxes are Paid by the Top 3% of US Taxpayers

In fiscal 2018, the US government expects to bring in roughly $1.7 trillion dollars in income taxes, and this figure represents about half of all federal revenues. The top 1% of taxpayers paid 37.3% of all of the taxes that…

April 15, 2019

Issuance of Erroneous Letter Does Not Bind the IRS

The taxpayer filed his federal Form 1040 tax return for 2005 listing a total tax liability of nearly $90,000.00.  The taxpayer then hired a different accountant who prepared and filed a federal Form 1040X, Amended U.S. Individual Income Tax Return,…

December 09, 2018

Should Churches Have Full Freedom of Speech on Political Issues?

Since 1954, churches and charities have been prohibited from engaging in political speech, including the ability to endorse or oppose candidates for public office. Then-Senator Lyndon Johnson of Texas proposed this amendment to Internal Revenue Code §501(c)(3) in 1954.  Over…

November 21, 2016

Trump Repeats His Call to End the Ban on Church Politicking

Presumptive Republican presidential nominee Donald Trump repeated his call on June 21, 2016, to end the ban on church politicking.   Since 1954, the Internal Revenue Service banned tax-exempt organizations, such as churches and nonprofit groups, from engaging in partisan…

July 22, 2016

Should a Pastor’s Vow of Poverty Make Him Exempt From Income Tax?

A pastor of a church took a vow of poverty and was the owner of an entity called Living Waters Ministries. The pastor performed services for a church. The church, in turn, issued checks for the pastor’s services to Living…

January 08, 2015

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