Menu
ReligiousLiberty.TV / Founders' First Freedom®
  • Home
  • About Us
  • Contact Us
  • Articles
ReligiousLiberty.TV / Founders' First Freedom®

Parties gearing up for 7th Circuit challenge to clergy housing tax exemption

Posted on May 30, 2018May 30, 2018 by ReligiousLiberty.TV

The 7th Circuit will decide whether a tax rule that allows only members of the clergy to deduct housing costs including rent, mortgage, furnishing, utilities, maintenance, and other associated costs is constitutional.

 

The Seventh Circuit U.S. Court of Appeals is presently reviewing briefs in Gaylor et al. v. U.S. Treasury (Mnuchin), a case involving the Freedom from Religion Foundations’ (FFRF) latest attempt to have a housing tax exemption unique to clergy under 26 U.S. C. section 107(2) declared unconstitutional.

This is the second time in recent years that the issue has found its way to the 7th Circuit. In 2013, U.S. District Judge Barbara Crabb ruled that the law, which allows clergy to deduct their housing expenses, which can include rent or mortgage, home improvements and repairs, utility costs, home decorations, appliances, and other costs from their taxable income.

The plaintiffs in the case, who are in leadership positions in the non-profit FFRF argued that they should also be provided these benefits, and in 2013, District Judge Barbara Crabb declared the deduction unconstitutional, but the 7th Circuit ruled that because the plaintiffs did not have standing to sue because they had not sought a refund of these amounts from the IRS.

This time, they did seek the refund, and Judge Crabb issued the same decision finding the exemption unconstitutional. The matter is now back before the 7th Circuit, captioned Annie Gaylor et al. v. Steven Mnuchin et al. (0:18-cv-01280).

The FFRF alleges that the tax code “directly benefits ministers and churches, most significantly by lowering a minister’s tax burden while discriminating against individual plaintiffs, who as the leaders of a nonreligious organization opposed to government endorsements of religion are denied the same benefit.”

Churches and clergy alike, led by the Becket Fund, are challenging the lawsuit (https://s3.amazonaws.com/becketnewsite/Int-Def-MSJ-Brief.pdf) , arguing that the rule is consistent with a historical understanding of the Establishment Clause, that non-ministers similarly receive “convenience of the employer” housing allowances in certain circumstances, and that churches and ministers should receive an exception to general tax laws to reduce government entanglement with religion and discrimination between religions.

The litigation targets the portion of the code that allows for the exemption for off-site housing, not on-site parsonages under 26 U.S. C. section 107(1).

Tweets by RelLibertyTV

Recent Posts

  • U.S. District Court Dismisses Hunter v. US Dept of Education Lawsuit

    U.S. District Court Dismisses Hunter v. US Dept of Education Lawsuit

    February 5, 2023
  • Colorado Court: Baker Must Provide "Non-Expressive" Cake to Transgender Customer

    Colorado Court: Baker Must Provide "Non-Expressive" Cake to Transgender Customer

    January 30, 2023
  • Supreme Court to Hear Christian Postal Employee Religious Discrimination Claim - Groff v. DeJoy

    Supreme Court to Hear Christian Postal Employee Religious Discrimination Claim - Groff v. DeJoy

    January 13, 2023
  • Analysis of AB 2098 and Its Potential to Suppress Free Speech of Medical Professionals in California

    Analysis of AB 2098 and Its Potential to Suppress Free Speech of Medical Professionals in California

    January 11, 2023
  • Idaho Supreme Court Denies Petition to Recognize Fundamental Right to Abortion

    Idaho Supreme Court Denies Petition to Recognize Fundamental Right to Abortion

    January 9, 2023

We are not a law firm, do not provide any legal services, legal advice or “lawyer referral services” and do not provide or participate in any legal representation.

©2023 ReligiousLiberty.TV / Founders' First Freedom® | WordPress Theme by Superb Themes
Manage Cookie Consent
To provide the best experience, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}