Chris Owen asked me to post this as his internet connection is down.
IRS knowingly lied about the Scientology tax exemption agreement
The IRS sent a letter to individual Scientologists following the secret tax-exemption agreement with the Church of Scientology in October 1993. Unfortunately I only have this undated OCR'd portion but maybe an complete original copy will turn up.
The letter was widely distributed by the IRS, at the taxpayer's expense, following the agreement. The IRS also agreed to send (again at public expense) a letter to overseas governments accompanying a pamphlet written by the Church.
Here's the letter. We'll come to the lie at the end of it.
Following recognition of the Church's tax exempt status, the Internal Revenue Service has agreed to assist in making its position regarding the Church known to other government agencies.
The IRS is sending an official statement that it has ruled that the churches of Scientology and related organization are organized and operate exclusively for religious and charitable purposes and are therefore exempt from income tax in the United States. This letter is being mailed to all nations which have treaties with the United States and also to various government agencies around the world. It will also be sent in response to future inquries about Scientology.
THe IRS is attaching to their letter this accompanying factual summary of Scientology which the church prepared for this purpose. It provides a concise description of L. Ron Hubbard, the Scientology religion, its practices and the organizations that comprise the Church.
This summary will ensure that the government agencies around the world finally have an accurate picture of Scientology in their files.
This copy is for your information and use.
The Internal Revenue Service (the "IRS") has issued ruling letters recognizing the Church of Scientology and its various subordinate churches and related charitable and educational institutions as tax exempt under section 501(c)(3) of the Unites States Internal Revenue Code of 1986, as amended.
In addition, the IRS has committed to treating contributions to the Church Of Scientology consistently with its treatment of contributions to other religions and churches and has taken concrete steps to ensure this equal treatment.
These rulings represent several significant actions by the United States government of interest to other governmental agencies and officials throughout the world. In particular, in issuing the rulings, the IRS has determined that:
* The religion of Scientology is a bona fide religion;
* These churches of Scientology and their related charitable and educational institutions are operated exclusively for recognized religious purposes;
* These churches of Scientology and their related charitable and educational institutions operate for the benefit of the public interest rather than for the interests of private individuals; and
* No part of the net earnings of these churches of Scientology and their related charitable and educational institutions inures for the benefit of any individual or noncharitable entity.
The IRS' rulings reflect the position of the Church of Scientology's fundamental religious practices, corporate and ecclesiastical structure and financial operations. This summary has been prepared by the Church to provide you with accurate, complete and current information concerning the Scientology religion and its key organizations.
Although the fundamental beliefs and practices have not changed since its inception in the 1950s and its financial operations have been in place for many years, files maintained by some law enforcement agencies throughout the world may not reflect an accurate picture of the religion but instead describe it in inaccurate and derogatory terms.
The resulting impact on the Scientology religion and individual Scientologists has been real and substantial. In fact, in several cases reliance on inaccurate and outdated information has fueled official hostility that has resulted in unwarranted and even illegal investigations of the Church and its parishioners; whereas, like the religion's Founder, current Church leaders have always been law-abiding and have never been implicated in or charged with any violation of the law.
The letter contains at least two stark untruths - to wit, In addition, the IRS has committed to treating contributions to the Church Of Scientology consistently with its treatment of contributions to other religions and churches and has taken concrete steps to ensure this equal treatment. This is completely untrue. In fact, the agreement specifically said not only that it was unique, but forbade giving a similar exemption to any other religions. The people who approved the agreement would have had to approve, or at least read, the contents of the letter to individual Scientologists; they therefore knew that this statement was completely untrue, but went ahead and lied anyway.
The second untruth is this one:
whereas, like the religion's Founder, current Church leaders have always been law-abiding and have never been implicated in or charged with any violation of the law. L. Ron Hubbard *was* implicated in *and* charged with violations of the law: he was fined in the 1950s for check fraud and was named as an unindicted co-conspiritor in the Guardian's Office trials of 1979, in which his wife and 10 other senior Scientologists were jailed for burgling IRS and other US Govt offices. The IRS went into the GO litigation in detail during the form 1023 stage, so again they would have known that this statement was untrue. Also, the statement is untrue in that Heber Jentszch, one of the five "individual members" of the Church Tax Compliance Committee (CTCC) - the body set up under the agreement to supervise the Church's relations with the IRS - has been charged in Spain with various criminal offences. He is currently on bail but shows no sign of wanting to go back and stand trial. This is something which the IRS should have known and probably did, but for its own reasons evidently chose to ignore. The letter's particularly significant when you consider that it fulfils precisely the goals of the illegal Operation Snow White for which Hubbard was named an unindicted co-conspiritor in 1979. Take a look at the planning note for Project Hunter, written by Hubbard himself (and therefore Sacred Scripture (TM)), which is at http://www.xenu.net/archive/go/ops/go732/go732j.htm.
Snow White is known still to be active - the Church admitted that there was still a Snow White Unit in existence - so this exact correlation between targets and actions is interesting, to say the least. More evidence that the IRS knew exactly what it was doing when it granted the agreement.