August 20, 2009
Tax Agency Proposes Change on Church Audits
Following a setback in a federal-court case this year, the IRS is releasing proposed regulations that would change the procedure it follows when pursuing inquiries into churches.
The proposal appears to explain why the IRS last month cited a "procedural issue" for stopping an audit of the Warroad Community Church, in Warroad, Minn. The review focused on the content of the pastor's sermons and whether they included any political endorsements.
A U.S. District Court judge in
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