Tithing, Expense, and the IRS

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_Arrakis
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Tithing, Expense, and the IRS

Post by _Arrakis »

http://www.forbes.com/sites/peterjreilly/2013/03/08/render-unto-caesar-mormon-tithe-not-a-necessary-expense-in-irs-collection-case/

George Thompson was in Tax Court not to appeal the amount of tax that he owed. That was not in dispute. It was nearly $900,000. There were company payroll taxes that he was personally responsible for from 2004, 2005 and 2007. There were also individual income taxes going back as far as 1992. Mr. Thompson was arguing about how much he was able to pay.


Petitioner has been a member of the Church of Jesus Christ of Latter-Day Saints (Church) his entire life and has regularly contributed 10% of his monthly income to the Church. Petitioner is actively involved in the Church and holds a position as a shift coordinator in the Church’s Manhattan Temple. Additionally, petitioner is a stake scouting coordinator for the Church and is responsible for overseeing six scout troops in different congregations in New Jersey. Petitioner was not compensated by the Church for his shift coordinator or stake scouting coordinator responsibilities.


Mr. Thompson argued that the tithe was a necessary expense since it was required to hold his church offices. That argument might have worked if he was a minister, who was required to tithe as a a condition of his paid employment.

Petitioner argues that the settlement officer’s classification of his tithing as a conditional expense violates the Free Exercise Clause of the First Amendment because if he is not able to tithe then his Church will require him to resign his ministerial positions with the Church. Petitioner contends that the settlement officer’s classification of petitioner’s tithe as a conditional expense is tantamount to the settlement officer deciding who can be a minister in petitioner’s Church.


Nice try, but no cigar.......

The Court was not buying that argument:

However, petitioner overlooks the fact that it is his Church who is requiring him to resign his positions if he does not tithe. The settlement officer did not require petitioner to resign his positions nor did she pressure the Church to require petitioner to resign. The Free Exercise Clause prohibits the Government from interfering in a church’s selection of its ministers.
Last edited by Guest on Sat Mar 09, 2013 5:53 pm, edited 1 time in total.
_Sethbag
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Re: Tithing not tax deductible

Post by _Sethbag »

This has nothing to do with tax deductibility.

The man had a huge tax bill due, and was working out a payment plan with the IRS. The IRS thought he was able to pay more per month than the man said he was able to pay. The tithing donations to the church came up as an issue because the IRS argued it wasn't a necessary expense, and that paying the tithing would reduce his ability to pay a higher amount on his back taxes.

In plain language, can the man voluntarily choose to give his money to his church, even if that voluntary gift results in him not being able to pay the IRS as much of the back taxes that he owes?
Mormonism ceased being a compelling topic for me when I finally came to terms with its transformation from a personality cult into a combination of a real estate company, a SuperPac, and Westboro Baptist Church. - Kishkumen
_Arrakis
_Emeritus
Posts: 1509
Joined: Fri Feb 15, 2013 4:54 pm

Re: Tithing, Expense, and the IRS

Post by _Arrakis »

Changed the title to be more accurate.....thanks
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