Federal Court Dismisses Challenge to Church Form 990 Exemption – More Litigation Expected

Federal Court Dismisses Challenge to Church Form 990 Exemption – More Litigation Expected

A District of Columbia federal district court has ordered the dismissal of a legal challenge to the longstanding church exemption to IRS Form 990 filing.

Religious leaders have been carefully following the case after it was initiated in 2018 by Freedom From Religion Foundation and its related entity, Nonbelief Relief. Read more background and prior ECFA reporting on the case.

More details on the court’s opinion should be available within the next 30 days, but the order references approving the motion to dismiss the case on technical grounds by the government and other intervenors who have defended the current exemption in the law for churches from the Form 990 filing requirement.

Media reports suggest that both the IRS and FFRF expect future litigation on the matter.[1]  

 

[1] Wesley Elmore, “IRS Expects More Litigation on 990 Exemption Despite Dismissal,” Tax Notes (Oct. 8, 2019).

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