Friday, November 2, 2018
Bryan Camp (Texas Tech) has written a TaxProf Blog post commenting on an interesting case out of the U.S. Tax Court. In Wayne R. Felton and Deondra J. Felton v. Commissioner, the court concluded that funds given by parishioners directly to their minister were additional taxable compensation to him and not nontaxable gifts. It also found that penalties applied, given the failure of the taxpayers to show they acted with reasonable cause and in good faith. For more details, see Camp's detailed analysis.