The 2010 Church & Clergy Tax Guide, written by nonprofit tax expert Richard Hammar, J.D., LL.M., CPA, released last week. Each year the Internal Revenue Service makes changes to tax law. In this fully updated annual guide, Richard Hammar reviews all of the key changes that are relevant to churches and clergy preparing to file their 2009 tax returns.

Key changes include:

· More than three dozen tax benefits, affecting virtually every taxpayer, were adjusted for inflation for 2009.

· Congress passed the American Recovery and Reinvestment Act of 2009 to save and create jobs, get the economy moving again, and transform it for long-term growth and stability. The Act modifies more than 300 sections of the federal tax code.

· The Emergency Economic Stabilization Act of 2008 extends the Pension Protection Act of 2006 for 2008 & 2009 allowing tax-free “qualified charitable distributions” of up to $100,000 from an IRA to a church or other charity (several rules and conditions apply).

· Final regulations addressing section 403(b) retirement plans were issued by the IRS in 2007. These regulations are a comprehensive update of the 403(b) regulations and are generally effective January 1, 2009. Under the 2007 regulations, sponsors of 403(b) plans are required to maintain a written plan. However, the IRS announced in 2008 that it would not treat a 403(b) plan as failing to satisfy the requirements of 403(b) and the 2007 regulations during 2009 if certain conditions are met. One condition is that by no later than December 31, 2009, the sponsor of the plan has adopted a written plan that is intended to satisfy the requirements of 403(b) (including the 2007 regulations) effective as of January 1, 2009.

To learn more about these changes and other pertinent tax information, see the 2010 Church & Clergy Tax Guide, by Richard Hammar.