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• The Tax Court "reconstructed" the income of two ministers who failed to file tax returns from 1979 through 1983. The ministers, who served as senior and associate ministers of the same church, argued that they had no taxable income to report for the years in question, since: (1) they were "ministers of the Gospel of Jesus Christ … living by the grace and mercy of God, and not by the receipt of taxable worldly income"; (2) they received a receipt at the end of each year describing their annual earnings as "remuneration received for assigned service as agent of the church; not income or wages"; and (3) their sole means of support came from the receipt of nontaxable gifts. The ministers kept no books or records, apparently thinking that this would avoid a determination of their taxable income. The IRS maintained that the ministers had taxable income for the years in question, ...

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  • January 2, 1989

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