The AP has an article on Sen. Chuck Grassley’s investigation of 6 ministries to determine whether they are complying with rules governing nonprofit institutions. (h/t Dispatches from the Culture Wars).
A month ago, Iowa Sen. Chuck Grassley sent pointed questions to a half-dozen high-profile ministries asking about salaries, perks and private jets in a quest to determine whether rules governing tax-exempt groups had been broken.
Only two of the six have responded. Some of the non-respondents have said simply that they need more time. Others have suggested that they will resist on grounds of separation of church & state. As to the latter, “Grassley has emphasized that he is not investigating doctrine but making sure organizations enjoying the benefits of tax-exempt status are playing by the rules. Grassley dismissed the religious liberty argument.
“Forget it,” he said. “They don’t have a leg to stand on.””
Apparently the IRS has different rules for religious institutions than it does for other non-profits and does not require churches to make its financial records public. During Grassley’s tenure on the Senate Finance Committee, he says that it’s only been necessary to issue subpoenas in two investigations — Enron and Jack Abramoff. If I were a nonprofit enjoying a preferential tax status, I’d be hesitant to join the company of the likes of Enron and Abramoff and would probably be inclined to err on the side of disclosure.
Actually my church does turn in a w-2 for my salary and FICA reimbursement. My housing allowance is reported when I file my taxes.
Most of the time I hear churches comment on things like Ten Commandments monuments, prayer in schools, prayer in the Statehouse, etc., they’re saying, “Separation of church and state? What’s that?”
But when the taxman starts sniffing around, they’re all for separation.
I’m all for the tax man sniffing around these guys. They are taking what is supposed to be a good thing for churches and communities and abusing it mightily.