My former church hired a member to do some work. He has IRS tax liens filed against him and has worked under the table for years, so the pastor agreed to make the checks payable to the wife, who had nothing to do with the work for which the guy was being paid. This seems illegal (fraudulent conveyence?). Does anyone know which part of the tax code might be involved? Could the church's assets be at risk? Everyone knows about this guy's tax problems. His wife uses her maiden name because of this.
2007-07-26 15:30:24 · 14 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I would say that the church could very well get in trouble with the irs for doing this. And yes, it is fraudulent. The church is paying the wife, who did not do any work for the church, instead of the guy, who did do the work, to circumvent the irs. Big trouble!!!!! I would say that the church could be in big legal trouble, and might have to pay the irs fines if they found out what the church is doing.
2007-07-26 15:37:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't know what specific part of the tax code this would violate but it is definitely illegal. It's tax evasion. And I would imagine that since the pastor is knowingly participating in this, the church could definitely be at risk. The wife can also get in trouble since she is also knowingly participating in the scam. You, as well as the other church members who know about the situation, should tell the pastor and the couple that it needs to stop immediately or you will report them to the IRS, the pastor will be out of job, and they will most likely all three end up in jail.
2007-07-26 22:37:08 · answer #2 · answered by Michelle S 3 · 0⤊ 0⤋
It is not legal for the employee to assign his paycheck to another person. So, the employee has done nothing illegal.
The church is paying the wife for services not rendered. She will pay taxes on that money. I doubt that the IRS is very interested in this.
Yes the church is behaving unethically, they are paying the wife for services the husband performed. In the big picture, no great harm is being done. The husband is still going to owe what he owes, and the wife will pay taxes.
Of course the IRS could pursue this, I doubt that they will bother.
2007-07-27 01:40:45 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
These are very serious offenses, and it is more then one count of fraud. Tax and social security. There is fraud for both the actual employee and the wife. Your religion is VERY unethical as well, what is it the Church of Greed?
The church is at risk, being a church does not excuse criminal activity.
I can't believe a church would support a thief like this and that the pastor would risk everything.
2007-07-26 22:39:15 · answer #4 · answered by Elsa D 6 · 0⤊ 0⤋
Besides being fraud and illegal, has the wife considered that the money going into her Social Security account isn't hers?? On top of fraud, she's risking losing her retirement if discovered. And YES, the pastor has implicated himself and the church, too.
2007-07-26 22:41:11 · answer #5 · answered by 5gr8k9s 5 · 0⤊ 0⤋
It's probably best to contact a good "Criminal" attorney and ask these questions.....furthermore, the following press release that someone posted on here is incorrect:
Stagni was ordered to pay a $60,000 fine and pay approximately $200,000 in taxes owed.
(This is NOT TRUE - Stagni has never had a civil audit that states that he owes $200,000 in taxes).
Over $400,000 of Stagni’s $2 million salary and bonuses from Comtrol were paid to him through another sham company, “Rocket Promotions.”
(This is also NOT TRUE - Stagni's charges were unrelated to his business called Rocket Promotions, and this company has never been proven through an audit to be a SHAM - and it's not a sham company).
The Government does not like to loose in court - and likes to make up LIES to convince a jury that someone is guilty...which is what happened in this case.
2007-07-29 00:43:32 · answer #6 · answered by Someone Who Knows 2 · 0⤊ 0⤋
You obviously know the answer before you asked the question. Yes, it's illegal - and tax fraud. And both the church that is paying the illegal payments and the pastor who ok'd this could be liable.
2007-07-26 23:41:24 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
so against the law. The church will also be in trouble too.
2007-07-26 23:36:18 · answer #8 · answered by prprincess 4 · 0⤊ 0⤋
Call your accountant immediately. This is absolutely not legal.
2007-07-26 22:34:31 · answer #9 · answered by TruthSeeker 3 · 0⤊ 0⤋
yes it is against the law.
2007-07-26 22:33:02 · answer #10 · answered by Bambi 1 · 0⤊ 0⤋