Church and State Issues in IRS Religious Education Dispute

November 30, 2004

Source: Yahoo News/National Law Journal

http://biz.yahoo.com/law/041129/7e392eca0aee1773cc9df7e48debcedd_1.html

On November 30, 2004 Yahoo News/National Law Journal reported, "tax lawyers are watching a trial in Los Angeles that pits an orthodox Jewish family against the Internal Revenue Service over whether tuition for religious education is deductible -- based in part on a 'secret' settlement between the IRS and the Church of Scientology. 'It's not clear that [plaintiffs] Michael and Marla Sklar will win, but if they do, it may well mean that millions of families will be able to deduct some portion of private religious school education,' said professor Evelyn Brody, a Chicago-Kent College of Law tax specialist. 'It would force the IRS to deal with millions of dollars in new deductions and it would overwhelm them.'Elizabeth Pierson, a tax attorney with Los Angeles' Hoffman Sabban & Watenmaker, said the case has tax lawyers' attention. 'The Sklars are trying to establish a brave new world where private compromises between the government and taxpayers can be relied on by unrelated taxpayers, not the norm,' she said. 'And it's a constitutional question of the separation of church and state, because, if religious education becomes deductible, it means that taxpayers are subsidizing religion.'"