From the Worldwide Faith News archives www.wfn.org
METHODIST MINISTER LOSES APPEAL IN TAX STATUS CASE
04 May 1996 20:30:30
95322 METHODIST MINISTER LOSES APPEAL IN TAX STATUS CASE
by United Methodist News Service
BATH COUNTY, Va.--A much anticipated decision has been handed down in a
court case having far-reaching implications for how clergy file their
On July 31 the 4th Circuit Court of Appeals upheld the earlier tax
court decision in the case of the Rev. Michael D. Weber, a United Methodist
minister serving a five-point parish near Stonewall, N.C.
A year ago the tax court had agreed with the Internal Revenue Service
(IRS) in its contention that Weber was not "self-employed." Now the
appeals court has agreed with the earlier judgments.
The Rev. Clifford Droke, general secretary of the United Methodist
General Council on Finance and Adminstration, said Methodist churches will
now issue W-2 forms instead of 1099s. Income tax withholding requirements
Droke stressed that clergy are still classified as self-employed for
Social Security and Medicare taxes and not subject to withholding
requirements although they may participate voluntarily.
Although the case applied only to Weber and, by extension, to all
other United Methodist ministers, the IRS has indicated that it will apply
the same standards to ordained ministers of all denominations.
For more information contact Presbyterian News Service
Presbyterian Church (U.S.A.), Louisville, KY 40202
phone 502-569-5504 fax 502-569-8073
E-mail PCUSA.NEWS@pcusa.org Web page: http://www.pcusa.org
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