# Scientology: unique tax break?

**URL:** <https://boards.straightdope.com/t/scientology-unique-tax-break/443890>\
**Category:** Factual Questions\
**Created:** [April 4, 2008, 3:47am UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890 "2008-04-04T03:47:35Z")\
**Posts on this page:** 8\
**Page:** 1

<div class="post-metadata">

**Author:** ![newberry](https://avatars.discourse-cdn.com/v4/letter/n/439d5e/32.png) [@newberry](https://boards.straightdope.com/u/newberry)\
**Post date:** [April 4, 2008, 3:47am UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/1 "2008-04-04T03:47:35Z")

</div>

Does the Church of Scientology get a tax break that no other religion gets? I’ve found some info regarding this issue, but not too much. Does anyone know the status of this case?

[http://www.law.com/jsp/article.jsp?id=1101136522270](http://www.law.com/jsp/article.jsp?id=1101136522270)  
[http://query.nytimes.com/gst/fullpage.html?res=9C03E7DC1430F937A15750C0A9629C8B63](http://query.nytimes.com/gst/fullpage.html?res=9C03E7DC1430F937A15750C0A9629C8B63)

From the NYT article linked above:

> [@](#):
>
> The couple, Michael and Marla Sklar of Los Angeles, originally took the I.R.S. to court after being denied $2,080 in 1993 deductions for religious education for their children. They lost that case, in which Mr. Sklar, a tax accountant, represented himself at trial. The couple appealed, and three judges on the Court of Appeals for the Ninth Circuit ruled against them two years ago. But one judge also took the unusual step of suggesting further litigation that would better define the issues.

---

<div class="post-metadata">

**Author:** ![mks57](https://avatars.discourse-cdn.com/v4/letter/m/b9bd4f/32.png) [@mks57](https://boards.straightdope.com/u/mks57)\
**Post date:** [April 4, 2008, 3:59am UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/2 "2008-04-04T03:59:12Z")

</div>

[CoS / IRS Closing Agreement](http://www.xenu.net/archive/IRS/)

---

<div class="post-metadata">

**Author:** ![newberry](https://avatars.discourse-cdn.com/v4/letter/n/439d5e/32.png) [@newberry](https://boards.straightdope.com/u/newberry)\
**Post date:** [April 4, 2008, 4:05am UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/3 "2008-04-04T04:05:19Z")

</div>

[QUOTE=mks57]  
[CoS / IRS Closing Agreement](http://www.xenu.net/archive/IRS/)  
[/QUOTE]

I’m familiar with that, but I thought that was a more general agreement that gave the Church tax exempt status, and settled the long battle. Does the 1993 agreement specify a tax break that no other religion gets?

---

<div class="post-metadata">

**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [April 4, 2008, 12:15pm UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/4 "2008-04-04T12:15:54Z")

</div>

No, they get the same tax-exempt treatment as any other religious organization.

I say tax 'em all and let God sort 'em out.

---

<div class="post-metadata">

**Author:** ![CalMeacham](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/calmeacham/32/35_2.png) [@CalMeacham](https://boards.straightdope.com/u/CalMeacham)\
**Post date:** [April 4, 2008, 12:35pm UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/5 "2008-04-04T12:35:48Z")

</div>

The Scientology Tax Break is controversial because the CoS has at times argued that they are NOT a Church, but a business. It’s rather complex (and deliberately so – they like to keep it obscure), but it seems more than a bit inconsistent and convenient to declare themselves a Church for tax purposes, but a business when they want to keep their finances and doctrines secret. There was big fight over their tax status, that was finally settled in favor of religion in a decision whose details still have not been made public – another thing that sticks in the craw. Go over to [www.xenu.com](http://www.xenu.com) and look at the gory details.

---

<div class="post-metadata">

**Author:** ![mks57](https://avatars.discourse-cdn.com/v4/letter/m/b9bd4f/32.png) [@mks57](https://boards.straightdope.com/u/mks57)\
**Post date:** [April 4, 2008, 12:48pm UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/6 "2008-04-04T12:48:36Z")

</div>

[QUOTE=friedo]  
No, they get the same tax-exempt treatment as any other religious organization.  
[/QUOTE]

How do you know that? Many things are subject to interpretation and can be argued. Not being a tax lawyer, I can’t determine whether the CoS’s agreement with the IRS is consistent with the way that other organizations have been treated by the IRS. The IRS may have made unwarranted concessions, just to settle the whole mess. The CoS is infamous for their use of the legal system to attack anyone who dares to criticize or investigate them.

---

<div class="post-metadata">

**Author:** ![newberry](https://avatars.discourse-cdn.com/v4/letter/n/439d5e/32.png) [@newberry](https://boards.straightdope.com/u/newberry)\
**Post date:** [April 4, 2008, 4:09pm UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/7 "2008-04-04T16:09:43Z")

</div>

[QUOTE=friedo]  
No, they get the same tax-exempt treatment as any other religious organization.

I say tax 'em all and let God sort 'em out.  
[/QUOTE]

Did you see the articles I linked to in the OP? The Sklars were not allowed to make a deduction that apparently is available to Scientologists.

Does anyone here have opinions on the Sklar case?

---

<div class="post-metadata">

**Author:** ![newberry](https://avatars.discourse-cdn.com/v4/letter/n/439d5e/32.png) [@newberry](https://boards.straightdope.com/u/newberry)\
**Post date:** [April 4, 2008, 5:29pm UTC](https://boards.straightdope.com/t/scientology-unique-tax-break/443890/8 "2008-04-04T17:29:28Z")

</div>

Another excerpt from the NYT article:

> [@](#):
>
> The judges in the original Sklar case said ‘‘it appears to be true’’ that Scientology – founded by L. Ron Hubbard, the science fiction writer, in the 1950’s – received preferential tax treatment in violation of the First Amendment.
> 
> ‘‘Why is Scientology training different from all other religious training?’’ Judge Barry D. Silverman wrote in his opinion, adding that the question would not be answered just then because the court was not faced with the question of whether '‘members of the Church of Scientology have become the I.R.S.‘s chosen people.’’ Judge Silverman then recommended litigation to address whether the government is improperly favoring one religion.
> 
> ‘‘If the I.R.S. does in fact give preferential treatment to members of the Church of Scientology – allowing them a special right to claim deductions that are contrary to law and disallowed to everybody else – then the proper course of action is a lawsuit to put a stop to that policy,’’ Judge Silverman wrote.
