Federal Court Strikes Down Religious Tax Exemption

Law360, New York (November 22, 2013, 3:43 PM EST) -- A Wisconsin federal court on Friday struck down an Internal Revenue Code provision passed in 1954 that excluded housing expenses from the gross income of ministers, concluding the regulation violated the First Amendment’s establishment clause.

The Western District of Wisconsin enjoined the Internal Revenue Service from allowing ministers to claim housing expense exemptions because Revenue Code Section 107(2) gave impermissible preferential treatment to religious leaders, while sticking all other taxpayers with the bill.

In halting the Internal Revenue Service’s use of the special housing deduction for...
To view the full article, register now.