I have a question for the accountants out there. I am changing the names to protect both myself and the church. Lets call the church First Church of America, and the Pastor John Smith.
The church pays Pastor Smith a salary of $1 per year, and provides other expenses like house and car. The church does not accept tax deductible donations. Any checks made out to "First Church of America" are returned. Instead, the church has the members write their checks to "Pastor John Smith" himself. Pastor Smith then declares this as taxable income (I think) and then he donates to the First Church of America as he sees fit (unknown if he makes these as tax deductible donations).
This church supposedly has 15 law firms working for them, and I'm sure one or more are tax attorneys. They seem to have gotten away with this for around 30 years. I don't understand how they do it. What tax loophole are they using? Why don't other churches try this if this church can do it?
Concerned