Goto full IRS secret agreement
From the Salt Lake Tribune, 1/3/98 Now, the headline gives the impression that the Co$ paid $12.5 mil to get their tax exempt status. Way to go, guys! Now Utah thinks that Co$ paid for their tax exemption. Scientologists Admit Church Paid IRS for Tax-Exempt Status THE ASSOCIATED PRESS LOS ANGELES -- The Church of Scientology paid the Internal Revenue Service $12.5 million to establish its tax-exempt status four years ago, a church official said Tuesday. Mark Rathbun, director of the church's Religious Technology Center, confirmed some previously undisclosed details of the 1993 settlement reported in Tuesday's edition of The Wall Street Journal. The settlement, known as a closure agreement, ended a struggle that began in 1967, when the IRS argued that the main Scientology church should lose its tax-exempt status because it was a for-profit business that enriched church officials. The church replied with more than 2,000 lawsuits against the IRS. Rathbun said ``rogue agents'' made ``outrageous claims'' against the church and it had to fight back. IRS spokesman Frank Keith said the decision to grant tax-exempt status was ``based upon voluminous information provided by the church to the IRS regarding its financial and other operations.'' Under the agreement, the Church of Scientology agreed to drop its lawsuits and pay $12.5 million to settle any tax assessments prior to 1993. However, further payments are possible. The church also agreed to set up a tax-compliance committee to monitor its adherence to the settlement and to the tax laws. Under the agreement, the IRS can levy as much as $50 million in penalties on the church if it finds that officials are enriching themselves with money intended for nonprofit activities.
Goto full IRS secret agreement