Many churches and ministries refuse to file criminal charges or sue when a trusted employee is caught embezzling funds. The refusal to sue is sometimes based on Bible verses where the Apostle Paul criticized Christians for suing each other in I Corinthians 6:1-8.
However, another option exists for reporting criminal religious leaders that operate non-profit organizations.
By filling out IRS Form 13909, a church can report pastors or priests, financial secretaries and board members “using income/assets for personal gain.”
Ironically enough, if thieves fail to report and pay taxes on the embezzled funds, they have also committed tax evasion.
According to IRS Publication 17, “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 21, or on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) if from your self-employment activity.”
For more info, check out the CNN article “The IRS wants to tax your illegal income”