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Showing 3 posts from December 2014.

Michigan Treasury Highlights Individual Income Tax Developments for 2014

The Michigan Department of Treasury has issued a release (available here (We have identified that the following link is no longer active, and it has been removed)) that highlights new developments affecting Michigan's individual income taxes for tax year 2014. The release notes the changes that Treasury has made to several forms, including Michigan Form MI-1040 and Schedule 1 (Additions and Subtractions). The release also notes that certain credit, deduction, and exemption amounts have been adjusted for inflation for tax year 2014. Finally, the release includes a number of reminders and announcements, including a reminder regarding the option to pay individual income taxes electronically. Please contact a member of Foster Swift's State and Local Tax (SALT) Practice Group if you have questions regarding Michigan taxes.

Categories: Income Tax, News & Events, Tax

501(c)(3) Organizations: What am I Required to Disclose When People Ask?

Tax-exempt organizations are exempt from many taxes, including federal income taxes.  However, in exchange for exemption from income tax for charitable activities and for receiving tax-deductible contributions, Congress requires 501(c)(3) organizations to disclose the following information to the public upon request: Read More ›

Categories: Income Tax, Tax, Tax-Exempt Organizations

Seventh Circuit Reverses District Court; Turns Away Constitutional Challenge to Minister's Housing Allowance

The principle that individuals have the right to worship as they see fit has been fundamental in the United States since the country's founding. However, while the government may be prohibited from establishing a religion or interfering with the free exercise thereof, that does not mean that government has no role in religion. Throughout history, organized religions have enjoyed special legal status, including in the Internal Revenue Code (the "Code").

The parsonage allowance, codified in Section 107 of the Code, has two parts.  Section 107(1) grants a tax exemption on the rental value of a home directly provided to a minister as part of his or her compensation. Section 107(2) excludes from gross income rental allowances paid to a minister as part of his or her compensation.

In November 2013, the U.S. District Court for the Western District of Wisconsin declared Section 107(2) of the Code unconstitutional because it violates the Establishment Clause of the First Amendment. The decision was appealed to the U.S. Court of Appeals for the Seventh Circuit.  Read More ›

Categories: Income Tax, News & Events, Tax