Gail Perry answers your tax related questions

I once was told that priests DO NOT have to pay taxes.  Is this true? B.F. via e-mail   

While it is true that members of the clergy have certain special benefits when it comes to the taxes they pay, they are still subject to income tax on the income they earn in their chosen profession.   

Members of the clergy don't have to pay income tax on the value of housing that is provided by the church, including furniture and utilities, if the housing is considered part of the compensation for performing services for the church. The value of food and servants provided by the church is not exempt from tax.   

You may be thinking of the fact that members of the clergy have the right to opt out of the Federal Social Security system and if this applies, certain earnings, including a housing allowance, are not subject to FICA withholding, nor are they subject to the self-employment tax.   

For more information about what is and is not taxable to members of the clergy, and how such people must be licensed in order to qualify for these special allowances, you can contact the IRS at 1-800-TAX-FORM, or on the Internet at www.irs.gov, and request IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers.  

I retired this spring and started drawing my social security, but the social security agency didn't have my 1989 tax figures. I have all my records except 1989. What IRS agency handles old tax forms? I need to contact them to get my 1989 wage info for social security. W.M. via e-mail. 

You can request the information you need directly from the IRS. You need to obtain a copy of IRS Form 4506, Request for Copy or Transcript of Tax Form. You can find this form on the IRS web site at www.irs.gov, or you can ask the IRS to send you a copy of the form by calling 1-800-TAX-FORM. Fill out this form and indicate that you want a transcript of your 1989 form. It should take 7-10 business days for the transcript to arrive.  

There is an option on this form to request an actual photocopy of your return instead of the transcript. I don't recommend this. First, it costs money. The charge for a photocopy is $23, whereas the transcript, which contains the same information, is free. Also, the IRS doesn't keep tax forms forever. Chances are good that they will not be able to produce an exact copy of your 1989 tax return, so you'll save time by requesting the transcript in the first place.  

The transcript is simply a computer printout of the numbers that appeared on your tax return. All the information you need will be on this form.  

I read that if you did not send your regular tax return in on time, you will not receive the tax relief reconciliation check. Is that true? O.M. via e-mail.  

The possibility exists that you might not receive your rebate check if you sent your 2000 tax return after April 15. The checks that are currently being processed are those for tax returns that were filed on time. The IRS is going to try to send rebate checks to late filers after the other checks are out. If you don't receive your check by December 31, you can assume you are not going to receive a rebate check.  

But do not despair! Taxpayers who did not receive a rebate check, but who were entitled to receive the check, can claim the rebate as a credit on their 2001 tax returns next spring. One way or another, you will receive the rebate if you qualify to do so.