Have you seen the new Delaware Quarters? On the back there is a picture of a fallow named Caesar. Seeing that name on a coin brings to mind another coin; the one that the Lord wanted to see when He was asked if we should pay taxes. He asked whose picture was on the coin, and when they said Caesar, He gave us the well known response to render unto Caesar that which is Caesar’s, and unto God that which is God’s.

When it comes to paying taxes, we have an obligation under both civil law and God’s law to pay what is due, but only what is due. "Render therefore to all their due: taxes to whom taxes are due, customs to whom customs, fear to whom fear, honor to whom honor." (Romans13: 7--NKJV)

Nothing here requires us to pay more than what is due. US Supreme Court Justice Learned Hand has also confirmed that Americans are not required to pay more than what is due, and are actually free to arrange their lives and finances so as to minimize taxes. Despite this, many of us step forward each year and volunteer to pay extra taxes.

Voluntary taxes come in two primary forms. The first is the penalty and interest charge that is imposed on a late filing or payment of taxes. The solution to this problem is obvious; not only to pay what is due, but also to pay WHEN it is due.

The second type of voluntary tax results from the extra tax that is paid because we have not developed a plan for dealing with our taxes, have failed to implement the plan we have, or we are following a plan that is flawed. Tax Planning is critical for preachers. Most of the tax breaks provided for preachers are only available if they are planned and implemented in advance. There is no "one size fits all" plan for ministers. Each man’s situation is different, so how the tools are applied varies from case to case. There are four primary areas that must be addressed, however, for any pastor’s plan. These are Housing, Ministry Expenses, Medical Expenses and Retirement.

Space does not permit a complete "how to" for these various areas, but here is a synopsis of the problems many of you face.

• There are still pastors being found who have no housing allowance designation.
• Most of you either pay the ministry expenses out of your own pocket or receive an expense allowance, instead of the Church paying for them as she should, either directly or through an accountable expense reimbursement plan.
• Many of you either have no health care coverage or are paying the premiums yourself, instead of having them provided as a fringe benefit.
• Most churches and pastors seem to have never heard of a retirement plan; yet even the ant knows to lay in store during the summer for the winter is coming fast. (See Proverbs 6:6-8).

There are not many tax or financial counselors who are fully conversant with the issues affecting preachers and churches. Our firm takes special interest in minister tax issues, and we are prepared to assist you to

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