IRS Reverses Course, Grants Tax-Exemption to Texas Religious Group

A senior IRS executive who had previously denied tax-exemption to Christians Engaged has reversed his decision, awarding the favorable designation to the Texas prayer group.

Stephen K. Martin, director of exempt organization rulings and agreements, had initially cited a claim that prayer and Bible study favor Republicans as the reason for Christians Engaged’s denial of tax-exempt status. However, in a letter received by the Christian organization on July 7, Martin announced a reversal regarding that decision.

“We’re pleased to tell you we determined you’re exempt from federal income tax under Internal Revenue Code 501(C)(3). Donors can deduct contributions they make to you under IRC Section 170,” the letter reads.

Martin didn’t say in the letter why he reversed his previous position, which was first reported by The Epoch Times and which prompted a national backlash.

Martin had said in a May 18 letter to the group, which was recognized as exempt from state taxes in 2019, that it wasn’t eligible for federal exemption because it “[engages] in prohibited political campaign intervention” and “[operates] for a substantial non-exempt private purpose and for the private interests of the [Republican] party.”

Christians Engaged encourages its followers to pray on a nonpartisan basis for government leaders at all levels, and to be active in civic affairs by voting and by applying biblical values to public affairs issues.

The group was represented in an appeal of Martin’s initial decision by First Liberty Institute, a Plano, Texas-based public interest law firm that specializes in religious freedom litigation.

In the appeal of IRS Director Martin’s May decision, Christians Engaged Counsel Lea Patterson of the First Liberty Institute, a Plano, Texas-based public interest law firm that specializes in religious freedom litigation, argued three points against the initial finding by the IRS executive.

“By finding that Christians Engaged does not meet the operational test, Director Martin errs in three ways:

1) he invents a nonexistent requirement that exempt organizations be neutral on public policy issues;

2) he incorrectly concludes that Christians Engaged primarily serves private, nonexempt purposes rather than public, exempt purposes because he thinks its beliefs overlap with the Republican Party’s policy positions; and

3) he violates the First Amendment’s Free Speech, and Free Exercise, and Establishment clauses by engaging in both viewpoint discrimination and religious discrimination,”

A new, much smaller agency that puts the onus on the government to prove individuals are “dodging” federal taxes. The tax code needs to be drastically reformed as well. Federal taxes should not be higher than a flat 10%, period. If people want to pay more than that (leftists), assess them at a higher rate.

The IRS as it is now is the federal government’s personal Gestapo. They’ve been out of control for decades and no one in that agency is answering for their tyranny.

But yet they gave tax exempt status to the satanic churches!

Ever want to read about an interesting battle, read about Scientology’s battle with the IRS for tax exempt status. It got really dirty.

Scientology targeted IRS employees
to recruit for members. Then they started an internal IRS whistle-blower organization.

Then they went after the people at the IRS that were against them, harassing in every way possible. This included identifying real estate owned by the IRS employee opponents and filing complaints of building code violations against them.

The IRS finally cried “Uncle” and gave Scientology church status to stop the harassment.

To be replaced by ....????

Personally, I'm ready to get behind the NRST (National Retail Sales Tax). The IRS, by its very nature requires individuals give up their 5th Amendment rights. The rules are arcane and largely arbitrary, as well as mostly incomprehensible.

The country survived until 1913 without an income tax. The only reason it was even accepted by the people initially is because almost no one actually paid anything. The first $20k of income wasn't even taxed, and the highest rate was 6%, which didn't even kick in until you it $500k, which was an insane amount of money back then. $20,000 in 1913 was equivalent to $503,012.12 in 2018.

For those interested, here is a copy of the entire 1913 income tax form, with instructions. It is a whopping 4 pages, with instructions.

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