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Death and taxes may be certain in life, but most people—including pastors—aren't dying to file their taxes. Tax compliance isn't easy for churches, either.

Still, it's especially important for pastors and churches to cooperate with Internal Revenue Service regulations because ministers are at a higher risk than the general public of being audited (especially when filing Schedule C). Churches are also being monitored more closely than ever by the Exempt Organization Division of the Internal Revenue Service.

To take some of the burden out of filing taxes, pastors, church business administrators, and treasurers might want to take a look at some helpful software, Internet, and print resources. The U.S. Congress, IRS, and state and local governments change tax regulations nearly every year, so some materials must be budgeted for and purchased annually.

Before making any purchase, though, ask what system must be set up to make compliance accurate and easy. If the system is accurate, you'll meet tax-compliance tests. If the system is easy, you'll use it more consistently, and ongoing record-keeping will mean spending fewer hours preparing taxes and completing forms at the end of the year. Careful use of print and electronic resources can help eliminate extra steps and time-consuming repetitive tasks.

Clergy will find especially helpful those products and services that are designed specifically for their particular tax situation. For example, how many taxpayers have to deal with parsonage allowances, mortgage exclusions, and depreciation on a personal ministry library? Consider:

The Abingdon Clergy Income Tax Guide 1999 for Windows and Macintosh, compiled by the global accounting firm Deloitte & Touche (Abingdon Press, $24.95; print, $13), tackles issues specific to ordained ministers. Various forms guide the reader into the text, which explains how to fill out the forms. The guide includes blank IRS forms to complete and print out (individual state forms are not available). Since a messy or unreadable tax return is a red flag to the IRS for a possible audit, a clean, printed copy is a definite priority.

For overall tax planning and preparation, The Zondervan Minister's Tax and Financial Guide, 1999 edition, by Daniel Busby, CPA (Zondervan, $14.99), offers a wealth of advice on a huge assortment of issues. It shows how to develop a compensation package that avoids unnecessary tax exposure. It tells how to set reimbursement policies and offers guidelines on how to determine whether ministers are employees or independent contractors. The guide also offers sample forms and essential policies to protect the clergy taxpayer.

A helpful fact-filled little book titled Minister's Guide for 1999 Income Tax by Conrad Teitell is available through the Episcopal Church Pension Group (call 800-223-6602 for cost and order information). One other important reference is the Institute of Church Leadership's Church and Clergy Tax Guide, by Richard Hammer, CPA ($24.95, print).

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