Ecclesiastical Order of ISM of AM, Inc. v. Commissioner
United States Tax Court
Petitioner seeks a declaratory judgment that it is entitled to tax-exempt status as a religious organization under sec. 501(c)(3), I.R.C. 1954. Petitioner recruits new members by emphasizing to a great extent that tax benefits of becoming a minister in petitioner's "religion." Tax avoidance counseling permeates petitioner's literature.
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Petitioner seeks a declaratory judgment that it is entitled to tax-exempt status as a religious organization under sec. 501(c)(3), I.R.C. 1954. Petitioner recruits new members by emphasizing to a great extent that tax benefits of becoming a minister in petitioner's "religion." Tax avoidance counseling permeates petitioner's literature. Held, petitioner is not entitled to exemption from Federal taxation under secs. 501(a) and 501(c)(3), I.R.C. 1954, as amended, because it fails the operational test of sec. 501(c)(3) in that petitioner's tax counseling serves a substantial nonexempt purpose.
1Opinion of the Court
OPINION
Tannenwald, Chief Judge:
This is an action for declaratory judgment pursuant to section 7428.1 Petitioner filed an application for recognition of exemption from Federal income tax on January 15, 1980, seeking exemption under section 501(c)(3) and claiming to be a church within the meaning of sections 509(a)(1) and 170(b)(l)(A)(i). After a lengthy administrative review, respondent, on February 18, 1981, issued an adverse ruling which stated in part that—
You are not operated exclusively for religious or any exempt purpose described in section 501(c)(3) of the Code. You are not operated in…
2Cases cited16 opinions
- Better Business Bureau of Washington, D. C., Inc. v. United StatesSupreme Court of the United States · 1946
- Church in Boston v. CommissionerUnited States Tax Court · 1978
- Parker v. CommissionerCourt of Appeals for the Eighth Circuit · 1966
- Unitary Mission Church v. CommissionerUnited States Tax Court · 1980
- Christian Echoes National Ministry, Inc. v. United StatesCourt of Appeals for the Tenth Circuit · 1973
11 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Church of Scientology v. CommissionerUnited States Tax Court · 1984
- Miedaner v. CommissionerUnited States Tax Court · 1983
- Ecclesiastical Order of the Ism of Am, Inc. v. ChasinCourt of Appeals for the Sixth Circuit · 1988
- Universal Life Church, Inc. v. United StatesUnited States Court of Claims · 1987
- National Asso. of American Churches v. CommissionerUnited States Tax Court · 1984
17 more not listed; retrieve them via the Exa API.