Circuit Court 'Highly Receptive' to Saving IRS Clergy Housing Allowance, Becket Counsel Says

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Jim's picture

https://www.americanbar.org/groups/taxation/publications/abataxtimes_hom...

This case is certain to be appealed to the Seventh Circuit and eventually to the Supreme Court. It presents a complex mix of First Amendment law and tax policy. If the decision stands, many will view it as appropriately resolving a problem of preferential taxation of religious workers. Clergy will have to pay tax on all their compensation, and churches and clergy may decide to renegotiate their compensation packages. If the higher courts reverse this decision, the consequences will depend on the reasons given. Either way, we may get some clarity in this often murky area of the law