wfn.org | METHODIST MINISTER LOSES APPEAL IN TAX STATUS CASE

[PCUSA_NEWS@ecunet.org]

18-Sep-95

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 
income tax. 
 
     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 
are unaffected. 
 
     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. 
 
 

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