IRS Accused of Losing $100 Billion a Year by Allowing Politicized Churches to Remain

Discussion in 'Politics' started by InstigatinMofo, Nov 25, 2012.

  1. InstigatinMofo

    InstigatinMofo Active Member

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  3. FlaFlaFlunkie

    FlaFlaFlunkie Fabulous!

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    I never understood why religious institutions get tax-free status in the first place.

    Can anyone clue me in?
     
  4. racerx

    racerx New Member

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    votes
     
  5. InstigatinMofo

    InstigatinMofo Active Member

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    Churches receive tax exempt status when they file as a charitable organization. All charitable organizations that file for tax free status are required to refrain from political speech. It's part of the deal. Churches can rant and rave all they want about politics, provided they pay taxes like every business in America. Churches want to make it about religion and free speech and the average ignorant American believes it. It's not. It's about a contract. If a church can't hold their end of the contract, then the contract is null and void. Simple as that.
     
  6. FlaFlaFlunkie

    FlaFlaFlunkie Fabulous!

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    So whenever we hear about a bishop, monsignor or some other preacher (who is a member of tax-free institution) make public statements about political matters, they're violating this contract about which you speak? :scratch:
     
  7. InstigatinMofo

    InstigatinMofo Active Member

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    here.

    Exemption Requirements - Section 501(c)(3) Organizations
    To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
    Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
    The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
    Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see Political and Lobbying Activities. For more information about lobbying activities by charities, see the article Lobbying Issues; for more information about political activities of charities, see the FY-2002 CPE topic Election Year Issues.
    Exempt Purposes - Internal Revenue Code Section 501(c)(3)
    The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.


    TL;DR: They're subject to tax law if they advocate a political agency or candidate/s.
     

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