Among its many adversaries, the Church of Scientology's longest-running feud has been with the Internal Revenue Service. So far, neither combatant has blinked. Over the past three decades, the IRS has revoked the tax-exempt status of various Scientology organizations, accusing them of operating in a commercial manner and of financially benefiting private individuals. From the late 1960s through mid-1970s, IRS agents classified Scientology as a "tax resister" and "subversive," a characterization later deemed improper by a judge. In 1984, the IRS's ...

The church has adopted the terminology and trappings of traditional theologies. But the IRS is not convinced. Since its founding some 35 years ago by the late science fiction writer L. Ron Hubbard, Scientology has worked hard to shore up its religious profile for the public, the courts and the Internal Revenue Service. In the old days, for example, those who purchased Hubbard's Scientology courses were called "students." Today, they are "parishioners." The group's "franchises" have become "missions." And Hubbard's teachings, ...

The Church of Scientology should hand over stacks of financial documents to the Internal Revenue Service, which is studying whether to deny the organization tax-exempt status, a federal magistrate says. But Magistrate Elizabeth Jenkins has pared the number of documents the IRS originally sought. Jenkins' recommendations, issued last week in U.S. District Court, will be forwarded to a federal judge who can adopt or revise them. The IRS says it has information indicating the Clearwater-based Church of Scientology Flag Service Organization ...

Abolish income tax; we'd all benefit By David Miscavige Guest columnist LOS ANGELES — When the 16th Amendment passed, permitting an income tax, voters were promised this new tax would be fairly administered. They were assured it would represent no threat to our liberties. And they were promised it would be temporary. They were also warned. On the floor of the House, Samuel Walker McCall of Massachusetts said the income tax is not "primarily to raise money for the state but ...

The IRS, which earlier took on the Scientologists in Washington and Los Angeles, now has brought its court battle to federal court in Tampa. Its target is Scientology's worldwide spiritual headquarters in Clearwater. Scientologists vehemently disagree, calling the IRS corrupt and accusing it of pursuing a vendetta against Scientology. ``We feel the federal government should investigate illegal drug running in Florida and should investigate money laundering in Florida banks,`` said spokesman Humberto Fontana. Scientologists also are in court with Pinellas County ...

CLEARWATER — A judge has decided to stop the auction of Church of Scientology property until a court can decide whether the church has to pay the taxes. The church and the Pinellas County property appraiser have disagreed for years about whether the church, which has its spiritual headquarters in Clearwater, must pay taxes on the property it owns in the county. The property appraiser's office has sent the church tax bills every year and the church has refused to pay ...

[This is a reprint of an article published on December 23, 1988 in the St. Petersburg Times.]

Helping judges determine when to permit an exception to the attorney-client privilege, the U.S. Supreme Court ruled Wednesday that judges may conduct in camera reviews of attorney communications to their clients — if the judges reasonably believe the clients sought advice to commit a crime or fraud. Reversing a decision of the 9th U.S. Circuit Court of Appeals, the justices ordered the appeals court to reconsider whether a trial court judge properly refused to listen to tapes the Internal Revenue Service ...

Seattle lawyer Walter D. Palmer says it was strictly "a business decision." But a result of an investment he made with business associate John G. Ritchie could result in a forced sale of Church of Scientology buildings in downtown Clearwater. And holding the auction for the men would be the Pinellas County government. Scientology lawyer Paul B. Johnson said he will seek an injunction to stop the sale. The proposed auction, which Palmer suggested two weeks ago, relates to Scientology's annual ...

WASHINGTON (AP) — Contributions called "fixed donations" made to the Church of Scientology by its members may not be claimed as federal income tax deductions, the Supreme Court ruled today. By a 5-2 vote, the justices upheld the Internal Revenue Service's contention that the fixed donations are not charitable contributions that can be counted as tax deductions. Lawyers for the Scientologists had argued that the IRS singled out their church for unfair treatment - a contention with which two justices agreed. ...

TAXATION Deductions Are Denied for Payments Made to Receive Religious Services Cite as 89 Daily Journal D.A.R. 7177 SUPREME COURT OF THE UNITED STATES Syllabus HERNANDEZ v. COMMISSIONER OF INTERNAL REVENUE CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT No. 87-963. Argued November 28, 1988—Decided June 6,1989* The Church of Scientology (Church) provides "auditing" sessions designed to increase members' spiritual awareness and training comes at which participants study the tenets of the faith and seek to attain ...

The U.S. Supreme Court has held that taxpayers could not deduct as charitable contributions payments made to the Church of Scientology in order to receive "auditing" and "training" services. Members of the Church of Scientology believe that an immortal spirit live in each individual and that a person becomes aware of the spirit through a process called "auditing." Auditing is a one-on-one encounter between a participant and a church official. The church also offers "training" sessions to instruct participants wishing to ...

WASHINGTON — The Supreme Court ruled Monday that taxpayers can't deduct the cost of Church of Scientology courses and counseling. In Clearwater, where the church has its headquarters and is locked in legal battles with the city and the Pinellas County Property Appraiser, local officials were encouraged by the ruling. The 5-2 ruling written by Justice Thurgood Marshall said that money paid to the church by Scientologists for training and a form of counseling called "auditing" are more like fees for ...

WASHINGTON — The Supreme Court ruled Monday that the "fixed donations" paid by members to the Church of Scientology are not tax-deductible, charitable contributions. In the 5-2 ruling, the high court said that money paid to the church by Scientologists for training and a form of counseling called "auditing" are more like fees for a service than donations to a church. The church requires fixed donations of as much as $3,000 for 12 1/2 hours of "auditing," during which a person ...

A Pinellas judge presiding over a Scientology tax dispute has removed himself from the case because of a newspaper report that cited a real estate transaction between the judge and the Church of Scientology. The St. Petersburg Times reported in December that Circuit Judge Howard P. Rives, who was presiding over a lawsuit concerning taxes on Scientology properties, sold one of those properties to the church in 1979. Rives said in December that there was no conflict in his role because ...

ROME - Seventy-five members of the Church of Scientology's Italian operation go before a Milan court today to face a long list of charges ranging from fraud, extortion and tax evasion to the illegal practice of medicine and taking advantage of incapacitated people. "It should be a lively court session," said the Milan daily Il Giornale, predicting possible courtroom demonstrations by Scientology sympathizers. The Scientologists have hired some of Milan's most prominent lawyers to defend them and are expected to base ...

After years of sparring with the townsfolk and veiling itself in secrecy, the Church of Scientology has succeeded in turning Clearwater into its spiritual mecca. Scientologists quietly run teen nightclubs, schools, day-care centers, management consulting firms and other businesses, records and interviews show. Now the strategy of the organization, longtime observers say, is to confront controversy, gain converts and make money - lots of it. Scientology's Clearwater operation brings in $1.5-million to $2-million a week, say church watchers who include Clearwater ...

The president of the Church of Scientology and 10 other members arrested in an investigation of alleged fraud and tax evasion have been released on more than $1 million bail, their lawyer said Sunday. A judge's order releasing church President Heber Jentzsch, an American, and the others came Saturday after facts were presented that "corrected" some allegations against the group, said the lawyer, Jose Luis Chamorro. Jentzsch, 53, a native of Salt Lake City, lives in Los Angeles. Judge Jose Maria ...

MADRID, Spain — The president of the Church of Scientology and 10 other members arrested in an investigation of alleged fraud and tax evasion have been released on more than $1 million bail, their lawyer said Sunday. A judge's order releasing church President Heber Jentzsch, an American, and the others came Saturday after facts were presented that "corrected" some allegations against the group, said the lawyer, Jose Luis Chamorro. Jentzsch, 53, a native of Salt Lake City, lives in Los Angeles. ...

A judge ordered the head of the Church of Scientology International jailed on Wednesday pending possible indictment on charges of fraud, criminal association and tax evasion. Judge Jose Maria Vazquez Honrubia said it would be at least a week before Heber Jentzsch of Los Angeles sees a second judge about setting bail. He told reporters Jentzsch was being sent to Carabanchel Prison outside Madrid and said the legal process could take months or even years before it reaches trial. Vazquez Honrubia ...

The U.S. Supreme Court has agreed to hear a government appeal in a Los Angeles case involving the Church of Scientology in order to decide how far the Internal Revenue Service can go in obtaining and using confidential documents in tax-fraud inquiries. The government launched an investigation in 1984 of the tax returns of L. Ron Hubbard, the church's founder who died Jan. 24, 1986. The IRS said it suspected that millions of dollars in church funds were transferred to Hubbard ...

WASHINGTON (AP)—The U.S. Supreme Court has rejected an appeal against back taxes and penalties by the Church of Scientology, leaving in place the 1967 revocation of its tax exemption. The high court declined to review lower court decisions penalizing the group for tax deficiencies in 1970, 1971 and 1972, holding that large amounts of its monies claimed as tax-exempt went for private enrichment of Scientology's late founder L Ron Hubbard and his wife, Mary Sue Hubbard. L. Ron Hubbard died in ...

The Supreme Court Monday expanded its study of whether payments made to the Church of Scientology by members may be claimed as federal income tax deductions. The justices, who last month agreed to review the issue, added other test cases and appeals to their study of the Scientology appeal and are expected to make a ruling next year. Their decision will determine whether fees for educational services of the Church of Scientology can be considerd deductible contributions. Scientologists call the payments ...