Thursday, September 16, 2004

The Tax Court yesterday held, in Pixley v. Commissioner, 123 T.C. No. 15 (9/15/04), that although a 10% tithe paid by a minister to his church as a condition of employment is allowable in determining the minister’s ability to pay outstanding tax liabilities, the taxpayer in this case failed to substantiate that he actually was employed as a Baptist minister during the tax years in question. As a result, the Appeals officer did not abuse his discretion in refusing to take into account the alleged tithing expenses in determining the taxpayer’s ability to pay his tax liabilities.