Jump directly to the content
Appeal Filed in Clergy Housing Allowance Case

The U.S. Department of Justice filed a notice of appeal in late January with the Seventh Circuit Court of Appeals in Chicago to challenge a federal district judge's ruling that the clergy housing allowance in her district is an unconstitutional preference for religion.

Federal district court judge Barbara Crabb made her ruling in late November for the Western District of Wisconsin, but stayed the decision pending the outcome of an expected appeals process. The Freedom From Religion Foundation, a nonprofit organization, brought the lawsuit.

The housing allowance is the most important tax benefit for clergy, so the pending outcome is significant. If the Seventh Circuit affirms Judge Crabb's decision, it would affect churches and clergy in Wisconsin, Illinois, and Indiana, the three states covered by the circuit—and the Internal Revenue Service also could choose to apply the decision nationwide for clergy tax purposes. If it's reversed, the benefit remains intact.

Article Preview

This article is currently available to ChurchLawAndTax.com subscribers only. To continue reading:

Related Topics:
From Issue:
View All
from our store
Church Compensation

Church Compensation

Learn the many pieces of employee compensation so you're in compliance with government guidelines and your ministry staff is properly cared for.
2018 Church & Clergy Tax Guide

2018 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
2018 Compensation Handbook for Church Staff

2018 Compensation Handbook for Church Staff

Compare your salary and benefit plans with thousands of other church workers nationwide.