Churches should consider adopting proactive administrative policies to strongly discourage the temptation of ebezzling from church related funds. All Administrative staff members should be placed on notice that if an embezzlement scheme is discovered, and if the stolen funds are not returned, the church may file a 1099 Form with the IRS against the guilty party. In other wordsThe embezzler must report the assets embezzled or stolen in gross income for each year of the theft, which may require the filing of amended returns. taxable at the time the fraudster takes control of the funds, regardless of future restitution or signing a payback agreement.
Modern day Judas
Churches should consider adopting proactive administrative policies to strongly discourage the temptation of ebezzling from church related funds. All Administrative staff members should be placed on notice that if an embezzlement scheme is discovered, and if the stolen funds are not returned, the church may file a 1099 Form with the IRS against the guilty party. In other wordsThe embezzler must report the assets embezzled or stolen in gross income for each year of the theft, which may require the filing of amended returns. taxable at the time the fraudster takes control of the funds, regardless of future restitution or signing a payback agreement.