U.S. district court grants IRS injunction against church leader

Earlier this month a U.S. district court granted the IRS an injunction against a church leader who was advising other ministers of his church (incorrectly) that they didn’t need to pay taxes to the IRS. The defendant was advising these ministers to take a vow of poverty, which included transferring all personal property to the church and assigning all wages earned to the church. In exchange, the church would provide the ministers with debit cards to use for all of their living expenses. The defendant advised them that they would not have to pay taxes on income which had been assigned to the church. However, using the Anticipatory Assignment of Income Doctrine, the court ruled that an individual could not avoid tax obligations by assigning their compensation to a third party.

You can read the full case decision here: http://bit.ly/GSbM3j



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