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Pastor's money troubles return

By JEFF TESTERMAN
Published May 31, 2006

TAMPA - Three years ago, Ronald H. Clark enjoyed a $500,000 Dade City ranch, a $275,000 vacation home in Celebration and the prosperous growth of his Living Water Church of Tampa

Then a rancorous divorce from his wife and church co-founder, Belinda, sparked an exodus of parishioners. The church went bankrupt and was sold. Clark lost both homes, agreed to pay 5 cents on the dollar to settle personal debts in his own bankruptcy and seemed to put old money troubles to rest.

Then the tax man came knocking.

Clark has since discovered he owes back taxes for income earned during his stint at the nondenominational Living Water Church, according to documents filed in federal bankruptcy court.

The IRS says Clark owes $24,648 in back taxes for 2001, when his income was about $150,000, and probably owes more for 2002 through 2004.

But a special tax attorney for Clark told a bankruptcy judge Tuesday that the IRS ought to be held in contempt of court for failing to file a claim for the taxes until almost six months after Clark's bankruptcy repayment plan had been approved in 2005.

Attorney Andrew Lennox said the IRS "sat on its hands'' without a word while Clark began making $1,680-a-year payments to his creditors. Lennox also said the IRS had erred in assessing taxes on a parsonage allowance, insisting only a portion of it was taxable.

An IRS attorney had an explanation for the delay in notifying Clark of the back taxes: Agents simply hadn't discovered the deficiency until long after Clark's bankruptcy, and promptly notified him when it was determined.

IRS attorney Bruce Russell also said the back taxes stem not just from Clark's parsonage allowance but from $44,737 in unreported income for 2001, plus penalties and interest.

The IRS also anticipates Clark may owe another $7,000 in taxes for 2002-04, according to Lennox.

U.S. Bankruptcy Judge K. Rodney May declined to hold the IRS in contempt Tuesday. But he did agree to consolidate ongoing bankruptcy matters with IRS issues now being contested in U.S. Tax Court so that Clark will not have to pay lawyers in two venues.

The judge offered Oct. 26 as the trial date for the back tax matter. After checking with Clark, Lennox said, "That is my client's birthday; we'll take that day your honor.''

Clark, who will be 50 on Oct. 26, was fired in February from his job as a patrol officer at the Zephyrhills Police Department over absences and a variety of protocol problems. He is now pastor of the Sanctuary of Tampa Bay Church in Temple Terrace.

"We want to resolve the tax issue,'' Clark said after Tuesday's hearing. "We want to pay our tax, and I want to get on with the rest of my life."

[Last modified May 31, 2006, 05:17:01]