chansen
Atheists sue IRS over preferential treatment toward churches
Posted on: 11/23/2013 12:58
American Atheists and several other secularist groups claim that the Internal Revenue Service gives preferential treatment to churches and religious organizations who seek or have 501(c)(3) non-profit status compared to secular non-profit organizations. The groups say this violates non-believers’ Constitutional rights because it treats churches differently than non-churches and equates to government support of religion.
Under current IRS policy, churches automatically qualify for 501(c)(3) status, though nonreligious 501(c)(3)s must go through an extensive application process to get the same tax benefits. In addition, religious organizations do not have to fill out annual Form 990 returns reports, which detail charities’ finances so the IRS or nonprofit watchdogs can identify possible fiscal wrongdoing and law-breaking. Critics, who have recently renewed their calls for religious exemption reform, say that these filing differences cost the U.S. government from some $17 to $71 billion annually.
http://www.newsweek.com/why-are-atheists-suing-irs-207091
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chemgal
Posted on: 11/23/2013 13:23
Are there similiar differences in Canada?
Mendalla
Posted on: 11/23/2013 14:08
Just keep in mind that this is going to affect UU churches, where many members are atheists and agnostics, just as much as any traditional church. That said, I do think that at least getting the government/IRS to justify why religious groups are entitled to be treated differently than secular charities (esp. where the Form 990 which deals with fiscal accountability is concerned) is a good thing so I do hope the suit goes forward even if all it does is bring more clarity to the legal status of religious tax breaks.
As for chemgal's question, someone more in the know about taxes will have to answer that though if I have time, I'll do some research.
Mendalla
revjohn
Posted on: 11/23/2013 15:06
Hi chemgal,
Tax exemptions for Churches in Canada are based on the presumption that the majority of revenues realized are translated into charitable expenditures. Each congregation has a fair volume of paperwork accounting for every dollar given and every dollar spent. If dollars spent do not fall within CRA parameters for charity work congregations can, and do, have their charity status revoked.
Other tax issues (ie.property, sewer, water) varies from jurisdiction to jurisdiction. In some instances the crown designated some lands a Church lands (meaning only Churches could be built on them or the lands were to be used to benefit the Church in some way).
Grace and peace to you.
John
chemgal
Posted on: 11/23/2013 15:42
Thanks!
mrs.anteater
Posted on: 11/23/2013 19:11
I would assume that that just means the mainline churches. If a group of friends gets together and calls themselves "the whatever church" they won't get automatic tax exemption, but be checked out first.
That reminds me that when the Moderator visited us not long ago, he said that the UCC ' tax exemption is under scrutiny presently, because she had been too political involved (Israel/Palatine) and Mardi's environmental involvement.
So, tax exemption is only for those who talk religion and shut up otherwise.
jon71
Posted on: 11/27/2013 13:04
Speaking for America it's not about preference, it's about seperation. Taxation is a govt. function. Tithes and offerings are a church function. Due to 1st amendment seperation of church and state those two things should never overlap. Yes I know we aren't perfectly consistent in following the 1st amendment and some fundies want it to only work one way but in this instance the I.R.S. is following the constitution as they should.