Two Quick Things Related to the Freedom From Religion Foundation

A quick announcement, and a quick related link:

I’ve been blogging about the Freedom From Religion Foundation’s suit challenging the parsonage allowance for several years, both here and at Surly Subgroup (and, at least once, at Times and Seasons). And, a week from Wednesday, the Seventh Circuit is going to hear oral arguments in the case. Right here in Chicago! Which means you know where I’ll be Wednesday, Oct. 24, at 9:30 am.

And, in anticipation of the case, Professor Anthony Kreis and I are going to do a preview of the case. This Wednesday at noon, here at the Loyola University Chicago law school. If you’re in the Chicagoland area, please feel free to come. The discussion will be great, and there’ll be pizza! (If you’re interested in coming, I’m attaching the official announcement at the bottom of this post; please RSVP here so we have a rough count of how much pizza to order.) [Read more…]

When Religious Tax Accommodations Are Inconsistent

On Wednesday, October 24, the Seventh Circuit is going to hear arguments in the appeal of Gaylor v. Mnuchin. I’ve written about this parsonage allowance case a number of times in the past (see here and here for examples), but as a quick summary: section 107(2) of the Code says that “ministers of the gospel” don’t have to include rental allowances in gross income. Several years ago, the Freedom From Religion Foundation challenged this parsonage allowance on the grounds that it violated the Establishment Clause of the Constitution. They won in the district court, but the Seventh Circuit found that the plaintiffs didn’t have standing to challenge the provision.

The Seventh Circuit also suggested, in a footnote, that if they claimed a parsonage allowance and the IRS rejected their claim, they might have standing. So they did, the IRS did, and the district court again found the provision unconstitutional. And now the Seventh Circuit will weigh in (again).

As a side note, this provision (as well as a bunch of others) made their way into God and the IRS, the book I wrote that was recently published about tax accommodations of religious individuals. The fundamental purpose of the book was to illustrate the ad hoc nature of religious accommodations in the tax law, and develop a framework that could provide some consistency as Congress and the IRS consider providing these accommodations. [Read more…]