In Defense of Special Tax Treatment for Clergy

Peter J. Reilly at Forbes: Ministers are allowed to exclude the portion of their compensation designated as a housing allowance from their taxable income. Quite a few people question the constitutionality of this provision and it looks like it may be finally put to the test. A federal district court has ruled that the Freedom From Religion Foundation has standing to proceed with its suit against the exclusion (Code Section 107). There are arguments that the provision is constitutional, though. I have invited Frank Sommerville to make the case for Section 107′s constitutionality. Mr. Sommerville is a lawyer and a CPA from Dallas Texas. He has written and lectured extensively on issues affecting not-for-profits.