# WTF? Scientology has a "secret" tax exemption for its own private schools?

**URL:** <https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287>\
**Category:** The BBQ Pit\
**Created:** [March 25, 2004, 5:01am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287 "2004-03-25T05:01:07Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![Diogenes\_the\_Cynic](https://avatars.discourse-cdn.com/v4/letter/d/e99b99/32.png) [@Diogenes\_the\_Cynic](https://boards.straightdope.com/u/Diogenes_the_Cynic)\
**Post date:** [March 25, 2004, 5:01am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/1 "2004-03-25T05:01:07Z")

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[NY Times](http://www.nytimes.com/2004/03/24/business/24irs.html?ex=1080795600&en=f1039316b68a5a4b&ei=5062&partner=GOOGLE)

This shit blows my fucking mind:

> [@](#):
>
> A trial is to begin here on Wednesday morning to determine whether a Jewish couple can deduct the cost of religious education for their five children, a tax benefit they say the federal government has granted to members of just one religion, the Church of Scientology.
> 
> The potential ramifications are huge, for a ruling in favor of the couple could affect the millions of Americans who send their children to religious schools of all types. At stake is whether people of all religions can deduct the cost of religious education as a charitable gift, as Scientologists are allowed to do under an officially secret 1993 agreement with the Internal Revenue Service.

An “officially secret agreement” What. The. Fuck. Is. That?

> [@](#):
>
> 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.
> 
> \<snip\>
> 
> “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.

How the mother FUCK did this happen? The Church of Scientology has a special, exclusive and fucking SECRET agreemnt with the IRS? How is this legal? Who the fuck is responsible?

> [@](#):
>
> A subpoena for the secret agreement with the Scientologists has been quashed at the request of the Church of Scientology and the I.R.S. A fight over access to that agreement is likely to be a crucial issue on appeal, which seems certain regardless of how the trial judge rules.

What fucking right does the IRS have to refuse to provide this agreement to the public?

SDMB attorneys, isn’t this completely fucking illegal and unconstitutional? How can the IRS unilaterally give a special tax status to one religion?

Something stinks to high heaven here and I can’t help but think it involves large sums of money passing hands. Can the IRS decide tax exempt status on its own or does there have to be legislation?

I’m completely spinning out over this. What happened?

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**Author:** ![WernhamHogg](https://avatars.discourse-cdn.com/v4/letter/w/a587f6/32.png) [@WernhamHogg](https://boards.straightdope.com/u/WernhamHogg)\
**Post date:** [March 25, 2004, 5:05am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/2 "2004-03-25T05:05:46Z")

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I have to finish reeling in horror at the notion of a Scientological school. Then and only then can I reel in horror at the tax ripoff scheme/scandal. It should take about six months, maybe more. I mean, can you imagine what kind of crazy fucked up school that would be? And what kind of crazy fucked up mess of a curriculum they would have? All L Ron, all the time. Eeps.

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**Author:** ![elucidator](https://avatars.discourse-cdn.com/v4/letter/e/8edcca/32.png) [@elucidator](https://boards.straightdope.com/u/elucidator)\
**Post date:** [March 25, 2004, 5:21am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/3 "2004-03-25T05:21:13Z")

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Pretty funny, **Dio**! I mean it, very droll, couldn’t have done better myself, making up some kind of Bizarro World/parallel universe thing where this kind of weird-ass shit might actually happen. I’ve just got to click your link, must go to some fake _NY Times_ site, kind of like that [WhiteHouse.org](http://WhiteHouse.org) thingy that pretends to be…(click)…

Oh, dear God.

In a situation like this, there is only one thing to do. But the liquor store is closed.

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**Author:** ![Larry\_Mudd](https://avatars.discourse-cdn.com/v4/letter/l/f14d63/32.png) [@Larry\_Mudd](https://boards.straightdope.com/u/Larry_Mudd)\
**Post date:** [March 25, 2004, 5:24am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/4 "2004-03-25T05:24:28Z")

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> [@skutir](#):
>
> I have to finish reeling in horror at the notion of a Scientological school.

Hey, I’ve spent quite a lot of time within the very walls of a Scientology school. (Looked after a Scientologist friend’s seven-year-old a lot, and often took him to/from school.)

I saw teachers solemnly pronounce bullying as “down-stat” behaviour, and rush to provide “touch-assists” to kids that had hurt themselves on the playground. (Teacher: “I need you to locate yourself in space and time, Timmy. Where are you?” Mudd: (internally) “Knock it off! Just bust out the iodine! Argh!”)

Ah well. When the _hell_ did the Church of Scientology get on good terms with the IRS? There’s a relationship that’s evolved in a surprising way.

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**Author:** ![Larry\_Mudd](https://avatars.discourse-cdn.com/v4/letter/l/f14d63/32.png) [@Larry\_Mudd](https://boards.straightdope.com/u/Larry_Mudd)\
**Post date:** [March 25, 2004, 5:27am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/5 "2004-03-25T05:27:29Z")

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I forgot: “Little Johnny, you go to the principal’s office” was replaced with "Little Johnny, _report to Ethics!"_

Not that there’s anything wrong with that-- It’s just that, combined with the uniforms, it seemed to have a vaguely fascist vibe, from where I was sitting. 😃

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**Author:** ![WernhamHogg](https://avatars.discourse-cdn.com/v4/letter/w/a587f6/32.png) [@WernhamHogg](https://boards.straightdope.com/u/WernhamHogg)\
**Post date:** [March 25, 2004, 5:33am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/6 "2004-03-25T05:33:11Z")

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> [@Larry Mudd](#):
>
> I forgot: “Little Johnny, you go to the principal’s office” was replaced with "Little Johnny, _report to Ethics!"_
> 
> Not that there’s anything wrong with that-- It’s just that, combined with the uniforms, it seemed to have a vaguely fascist vibe, from where I was sitting. 😃

Well, obviously you’re just saying that because you’re a Suppressive Person.

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**Author:** ![elucidator](https://avatars.discourse-cdn.com/v4/letter/e/8edcca/32.png) [@elucidator](https://boards.straightdope.com/u/elucidator)\
**Post date:** [March 25, 2004, 5:33am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/7 "2004-03-25T05:33:27Z")

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It’s not happening, they’re just making it up. **Larry** and **Diogenes** are just a couple of scamps, and somehow they got the _NY Times_ to play along with the joke, just to scare the bejabbers out of poor ol’ **e.** , that’s what it is, just a practical joke, right, guys? Guys? Ha, ha! Ha? Ha?

I want my banky.

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**Author:** ![jayjay](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jayjay/32/6765_2.png) [@jayjay](https://boards.straightdope.com/u/jayjay)\
**Post date:** [March 25, 2004, 5:41am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/8 "2004-03-25T05:41:24Z")

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I hope Judge Silverman will keep a close eye on his dog in the coming months…

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**Author:** ![askeptic](https://avatars.discourse-cdn.com/v4/letter/a/eb9ed0/32.png) [@askeptic](https://boards.straightdope.com/u/askeptic)\
**Post date:** [March 25, 2004, 5:53am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/9 "2004-03-25T05:53:22Z")

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And now for a non sarcastic yet not terribly well infomed comment:

I bet if you check,Catholic schools and other religious institutions are not taxed either. As to agreements with the IRS, no IRS documents are availible to the public. If the Church of Sci. (which I happen to believe L.Ron started as a tax shelter) has been granted tax exempt status as a religion then it is entitled to the same exemption as any other religion. I may think they’re cooky, but I think that about most (well probably all) religions but it is not my call.

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**Author:** ![WernhamHogg](https://avatars.discourse-cdn.com/v4/letter/w/a587f6/32.png) [@WernhamHogg](https://boards.straightdope.com/u/WernhamHogg)\
**Post date:** [March 25, 2004, 5:57am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/10 "2004-03-25T05:57:28Z")

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> [@askeptic](#):
>
> And now for a non sarcastic yet not terribly well infomed comment:
> 
> I bet if you check,Catholic schools and other religious institutions are not taxed either. As to agreements with the IRS, no IRS documents are availible to the public. If the Church of Sci. (which I happen to believe L.Ron started as a tax shelter) has been granted tax exempt status as a religion then it is entitled to the same exemption as any other religion. I may think they’re cooky, but I think that about most (well probably all) religions but it is not my call.

Did you read the article or the OP? It’s not about having tax-exempt status… all religious organizations have that… it’s about being able to claim tuition to a private religious school as a tax deduction.

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**Author:** ![Equipoise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/equipoise/32/151_2.png) [@Equipoise](https://boards.straightdope.com/u/Equipoise)\
**Post date:** [March 25, 2004, 5:59am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/11 "2004-03-25T05:59:42Z")

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> [@Larry Mudd](#):
>
> Ah well. When the _hell_ did the Church of Scientology get on good terms with the IRS? There’s a relationship that’s evolved in a surprising way.

Not surprising at all. Someday a journalist who doesn’t mind being sued into oblivion, their personal life, reputation and career stomped on, shredded, then burned to ashes, should look into the relationship between the IRS and $cientology. I’m sure it would involve all kinds of intrigue and blackmail.

That would be interesting. Too bad it will never happen.

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**Author:** ![Diogenes\_the\_Cynic](https://avatars.discourse-cdn.com/v4/letter/d/e99b99/32.png) [@Diogenes\_the\_Cynic](https://boards.straightdope.com/u/Diogenes_the_Cynic)\
**Post date:** [March 25, 2004, 6:00am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/12 "2004-03-25T06:00:27Z")

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> [@askeptic](#):
>
> And now for a non sarcastic yet not terribly well infomed comment:
> 
> I bet if you check,Catholic schools and other religious institutions are not taxed either. As to agreements with the IRS, no IRS documents are availible to the public. If the Church of Sci. (which I happen to believe L.Ron started as a tax shelter) has been granted tax exempt status as a religion then it is entitled to the same exemption as any other religion. I may think they’re cooky, but I think that about most (well probably all) religions but it is not my call.

Read the article. The tax exemption is exclusive to Scientology schools. It’s not an exemption for the church but for the parents who send their kids to those schools. People who send their kids to Catholic schools do do not get a tax break for it.

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**Author:** ![askeptic](https://avatars.discourse-cdn.com/v4/letter/a/eb9ed0/32.png) [@askeptic](https://boards.straightdope.com/u/askeptic)\
**Post date:** [March 25, 2004, 6:19am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/13 "2004-03-25T06:19:26Z")

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OK, now that I have read the article I have not changed my mind much. In my own defence I did say my comments would not be sarcastic or well informed. I think after reading the article that there is much left out. Thats why I think reviewing court cases is best done by lawyers. Granted, many lawyers are complete idiots, but generally having passed the Bar Exam they can identify the issues. The article did not do this. I can hardly offer a response unless I know the Tax Code under which the plaintiff claimed an exemption, or the Tax Code under which Scientologists get the supposed exemption. Also some background on “Special Agreements” with the IRS would be nice. 😕

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**Author:** ![Diogenes\_the\_Cynic](https://avatars.discourse-cdn.com/v4/letter/d/e99b99/32.png) [@Diogenes\_the\_Cynic](https://boards.straightdope.com/u/Diogenes_the_Cynic)\
**Post date:** [March 25, 2004, 6:41am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/14 "2004-03-25T06:41:32Z")

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Are you sure you read it thoroughly. Essentially, the agreement allows parents who send their kids to Scientology schools to write off the tution as a charitable donation. This option does not exist for any religious school but Scientology.

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**Author:** ![Doomtrain](https://avatars.discourse-cdn.com/v4/letter/d/0ea827/32.png) [@Doomtrain](https://boards.straightdope.com/u/Doomtrain)\
**Post date:** [March 25, 2004, 6:43am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/15 "2004-03-25T06:43:24Z")

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Do I need to draw you a picture? C’mon, guys, Scientology and the IRS working together? Heck, what organizations are more alike! They’re based on weird, indiscipherable things. They’re ruthless if you get on their bad side. No one really knows what goes on in the organization. They’ll gladly take all your money…

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**Author:** ![askeptic](https://avatars.discourse-cdn.com/v4/letter/a/eb9ed0/32.png) [@askeptic](https://boards.straightdope.com/u/askeptic)\
**Post date:** [March 25, 2004, 7:00am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/16 "2004-03-25T07:00:59Z")

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> [@Diogenes the Cynic](#):
>
> Are you sure you read it thoroughly. Essentially, the agreement allows parents who send their kids to Scientology schools to write off the tution as a charitable donation. This option does not exist for any religious school but Scientology.

Yes, I read it thoroughly. I am not suggesting that it is innacurate, just that it did not provide enough information to form an opinion. Sure kneejerk opinions will be plentiful, but informed opinions cannot be made based on the limited information provided. (and no, I am not going to research the issue. My complaints are addressed to the article, the author made claims, it is his obligation to support them, which he certainly did not.)

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**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\
**Post date:** [March 25, 2004, 7:03am UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/17 "2004-03-25T07:03:47Z")

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> [@](#):
>
> as Scientologists are allowed to do under an officially secret 1993 agreement with the Internal Revenue Service.

Hmmm. Looks like yet another Clinton fiasco. 🙂

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**Author:** ![Metacom](https://avatars.discourse-cdn.com/v4/letter/m/ecae2f/32.png) [@Metacom](https://boards.straightdope.com/u/Metacom)\
**Post date:** [March 25, 2004, 1:22pm UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/18 "2004-03-25T13:22:47Z")

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> [@askeptic](#):
>
> Yes, I read it thoroughly. I am not suggesting that it is innacurate, just that it did not provide enough information to form an opinion. Sure kneejerk opinions will be plentiful, but informed opinions cannot be made based on the limited information provided. (and no, I am not going to research the issue. My complaints are addressed to the article, the author made claims, it is his obligation to support them, which he certainly did not.)

So, **askeptic** , been audited lately?

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**Author:** ![JackaRoe](https://avatars.discourse-cdn.com/v4/letter/j/b5e925/32.png) [@JackaRoe](https://boards.straightdope.com/u/JackaRoe)\
**Post date:** [March 25, 2004, 1:47pm UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/19 "2004-03-25T13:47:27Z")

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My duaghter is in a Catholic school and I do not get to write off here tuition, but I am also expected to pledge $800 to the church each year that gies to the school. I do get to writ off this amount as a charitable contribution. I do not know how the figured out the $800 amount its is less than a third of the annual tuition. Why not pledge the whole amount? I gues the IRS would get mad.

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**Author:** ![Diogenes\_the\_Cynic](https://avatars.discourse-cdn.com/v4/letter/d/e99b99/32.png) [@Diogenes\_the\_Cynic](https://boards.straightdope.com/u/Diogenes_the_Cynic)\
**Post date:** [March 25, 2004, 1:50pm UTC](https://boards.straightdope.com/t/wtf-scientology-has-a-secret-tax-exemption-for-its-own-private-schools/236287/20 "2004-03-25T13:50:52Z")

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> [@John Mace](#):
>
> Hmmm. Looks like yet another Clinton fiasco. 🙂

Not necessarily. It depends on what part of 1993 it happened in. If it happened in January it’s a Bush Sr. fiasco.

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