Despite recommendations made in previous audits, the IRS still fails to use Currency Transaction Reports (CTRs) in an effective manner, according to a Treasury Inspector General for Tax Administration (TIGTA) audit. Financial institutions must file CTRs with the Financial Crimes Enforcement Network for transactions that exceed $10,000 or multiple currency transactions that aggregate more than $10,000 in one day. The IRS isn’t making “systemic use” of data derived from CTRs in its examinations, the audit noted. Read the audit report here: https://bit.ly/2PGScSk
Voluntary pastoral donations to a minister were taxable income, not nontaxable gifts. A congregation’s minister collected voluntary donations in specially marked envelopes labeled “pastoral gifts.” The minister argued that these donations were nontaxable gifts. The U.S. Tax Court ruled that the donations were taxable income for several reasons including they far exceeded the sum of his deemed salary and parsonage allowance, and they were meant to keep him at his post. Plus, the donations were part of a routine, highly structured program.