I understand there are several changes in the law that affect the minister or church administration. Can you provide some information on these changes?
Yes, we are going to see several changes that affect the reporting immediately. First, all W-2 forms and Form 1099 for 2016 must be completed and filed by January 31, 2017. In prior years we had until the end of February but not this year. Any W-2 or Form 1099 received by the IRS or Social Security Administration will be penalized a substantial penalty. This is critical for the church to timely file the necessary reporting information forms.
Some two million entities will be provided with a volunteer identification number to be placed on the W-2 forms. Please be sure to include these on all W-2 forms for 2016.
The due dates for filing income tax returns have changed. The new due dates are: for individuals April 15; regular 1120 corporations April 15; S corporations March 15, and partnership returns on March 15.
There will be many changes an individual tax preparer will request of the individual before completing the Form 1040, such as documentation for the verification of a dependent’s social security number, citizenship, and that the dependent actually lived with the taxpayer. If the taxpayer claims Earned Income Tax Credit, many more proofs will be requested.