McGahen v. Commissioner
United States Tax Court
Petitioner was ordained a minister and chartered as a "church personally," Chapter 7807, by the Basic Bible Church of America. He executed a vow of poverty whereby he purportedly transferred all his assets, including his wages, to Chapter 7807. He was instructed by an official of the Basic Bible Church of America to continue his work as a boilermaker.
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Petitioner was ordained a minister and chartered as a "church personally," Chapter 7807, by the Basic Bible Church of America. He executed a vow of poverty whereby he purportedly transferred all his assets, including his wages, to Chapter 7807. He was instructed by an official of the Basic Bible Church of America to continue his work as a boilermaker. He deposited all his salary into a checking account in the name of Chapter 7807 upon which he and his wife, a trustee of Chapter 7807, could draw. These funds were used to pay his personal, living, and family expenses. Held: 1. Petitioner earned…
1Opinion of the Court
Dawson, Judge:
In these consolidated cases, respondent determined the following deficiencies in petitioner’s Federal income taxes and additions to tax:
Addition to tax Docket No. Year Deficiency sec. 6653(a)1
15447-79 1977 $8,780.10 $439.01
4435-80 1978 8,760.32 438.02
The issues presented for decision are:(1) Whether certain amounts earned by petitioner in 1977 and 1978 are excludable from his gross income because he was a member of a religious order which deemed him to be a “church personally” and which required him to take a vow of poverty and turn over the salary earned in his individual…
2Cases cited28 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Maryland Casualty Co. v. United StatesSupreme Court of the United States · 1920
- Helvering v. EubankSupreme Court of the United States · 1941
23 more not listed; retrieve them via the Exa API.
3Cited by127 opinions
- Stephenson v. CommissionerUnited States Tax Court · 1982
- John L. Stephenson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1984
- Davis v. CommissionerUnited States Tax Court · 1983
- Miedaner v. CommissionerUnited States Tax Court · 1983
- Eric A. Pollard v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Eleventh Circuit · 1986
122 more not listed; retrieve them via the Exa API.