# The Free Exercise Thereof



## Warren (Dec 12, 2014)

Are Churches Subject to the Tax Code? These are some thoughts of mine.



> ... for he is God’s servant for your good. But if you do wrong, be afraid, for he does not bear the sword in vain; he is the servant of God to execute his wrath on the wrongdoer. Therefore one must be subject, not only to avoid God’s wrath but also for the sake of conscience. For the same reason you also pay taxes, for the authorities are ministers of God, attending to this very thing. Pay all of them their dues, taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honor to whom honor is due.


Romans 13:4-7

I've read that, as an incorporated organization - a corporation - the church becomes a fiction, subject to the executive branch (IRS). However, I was not aware that even under the law as it is written, an unincorporated church is still subject to the state's definitions of a church, as a church must meet the State's definitions of a church, to be thought a church (Taylor v. Internal Revenue).

The Johnson Amendment prohibits churches from preaching on issues which could be construed as supporting one campaign or another. Well, what churches will the IRS favor? Favor! But I thought _Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances_ (US Constitution, 1st Amendment).



> And I tell you, you are Peter, and on this rock I will build my church, and the powers of death shall not prevail against it. I will give you the keys of the kingdom of heaven, and whatever you bind on earth shall be bound in heaven, and whatever you loose on earth shall be loosed in heaven.


Matthew 16:18-19

_Yet, as nursing fathers, it is the duty of civil magistrates to protect the church of our common Lord, without giving the preference to any denomination of Christians above the rest, in such a manner that all ecclesiastical persons whatever shall enjoy the full, free, and unquestioned liberty of discharging every part of their sacred functions, without violence or danger._ WCF, Article 23

Consider, if the Church and State have their own spheres - being the Keys of Heaven and Hell and the Sword of God's Wrath, respectively - and neither can arrogate powers without blaspheming Christ, who is head of all by humility to the Father, then does the US tax code intrude upon Christ's sole discipline of the church? Or does the law as it is truly _protect_ the church, by defining and incorporating her, as a child nursed by kings for our own service?



> Foreigners shall build up your walls,
> and their kings shall minister to you;
> for in my wrath I smote you,
> but in my favor I have had mercy on you.
> ...


Isaiah 60:10, 12& 16

Have the United States overreached into matters of the church, and do churches turn to *serve* them instead of Christ by incorporation? I believe the incorporated assumption the Church is a fictional entity, subordinate to the State, makes CEOs out of some shepherds.

Thanks


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## MW (Dec 12, 2014)

Warren said:


> Have the United States overreached into matters of the church, and do churches turn to *serve* them instead of Christ by incorporation? I believe the incorporated assumption the Church is a fictional entity, subordinate to the State, makes CEOs out of some shepherds.



Wise men will make distinctions where things differ.


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## Andrew P.C. (Dec 12, 2014)

All I can tell you is that God has established government in every nation or land, at every point in time. If the government is telling you to choose between God and them, then you must come to a rebellious conclusion, if not... then give unto Caesar what is Caesar's. Also, I must admit that I do not believe the lie that our nation was Christian in the beginning. 

Just as Rome fell, so too will the United States given time... as well as all other nations.


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## Edward (Dec 12, 2014)

Warren said:


> I've read that, as an incorporated organization - a corporation - the church becomes a fiction, subject to the executive branch (IRS).



The corporate charter isn't what is important in determining whether contributions can be tax deductible; the test is whether there is an entity. While incorporating under state law makes it easier to establish entity status (since corporations are specifically mentioned) lack of a state charter is not necessarily fatal. See Morey v. Riddell Morey v. Riddell, 205 F. Supp. 918 (S.D. Cal. 1962) :: Justia (Not sure a court would be willing to go that far today). Consult an accountant and a tax lawyer before proceeding. 

Of course, if the congregation and members prefer to pay taxes, they can set things up so they can do so.


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## Edward (Dec 12, 2014)

For the broader issues, I'd refer you to Doug Kelly's paper for the PCA.

http://www.pcahistory.org/pca/2-118.pdf


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## Warren (Dec 13, 2014)

Andrew P.C. said:


> ... give unto Caesar what is Caesar's. Also, I must admit that I do not believe the lie that our nation was Christian in the beginning.


While the institution never names Christ, the constitutional signatories were mostly Protestant, some clergy, some even Calvinist. Unless a confessional, orthodox church goer's deeds are 1 Corinthians or Galatians territory, I'll just believe they're Christian. Of course no one can speak for their piety or where their treasure really was, yet they denied Voltaire and his saint Meslier.

http://www.adherents.com/gov/Founding_Fathers_Religion.html


Edward said:


> While incorporating under state law makes it easier to establish entity status (since corporations are specifically mentioned) lack of a state charter is not necessarily fatal.
> ...
> For the broader issues, I'd refer you to Doug Kelly's paper for the PCA.
> 
> http://www.pcahistory.org/pca/2-118.pdf




> Therefore, when a church in a particular country seeks incorporation it is not necessarily doing anything other than specifying in mutually accessible legal terms that which already exists by divine right. To do such has nothing to do with a subordination of the Body of Christ to the civil authority. Incorporation is not subordination, but the recognition of mutually independent jurisdictions. This, at any rate, is the general situation.


Here are factual implications of the Johnson Amendment's parenthesis around tax exempt non-profits:
Internal Revenue Bulletin - June 18, 2007 - Rev. Rul. 2007-41


MW said:


> Wise men will make distinctions where things differ.


Then I'll pray for wise interpreters in the courts, and wise ministers.


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