and the IRS
the 1990 Time Magazine article "The Thriving Cult of
Greed and Power":
Internal Revenue Service ruling in 1967 stripped Scientology's
mother church of its tax-exempt status. A federal court
ruled in 1971 that Hubbard's medical claims were bogus and
that E-meter auditing could no longer be called a scientific
responded by going fully religious, seeking First Amendment protection
for Scientology's strange rites. His counselors started sporting
clerical collars. Chapels were built, franchises became "missions,"
fees became "fixed donations," and Hubbard's comic-book
cosmology became "sacred scriptures.'
the early 1970s, the IRS conducted its own auditing sessions and
proved that Hubbard was skimming millions of dollars from the church,
laundering the money through dummy corporations in Panama and stashing
it in Swiss bank accounts. Moreover, church members stole IRS documents,
filed false tax returns and harassed the agency's employees. By
late 1985, with high-level defectors accusing Hubbard of having
stolen as much as S200 million from the church, the IRS was seeking
an indictment of Hubbard for tax fraud. Scientology members "worked
day and night" shredding documents the IRS sought, according
to defector Aznaran, who took part in the scheme. Hubbard, who had
been in hiding for five years, died before the criminal case could
1993 The Church of Scientology was granted tax exempt status by
the Internal Revenue Service.
did the IRS do such an abrupt turnabout? The answer is not easily
discerned. The IRS and Scientology entered into a secret deal which
was subsequently leaked to the press.
the formerly secret IRS agreement
surrounding the secret IRS deal led to an investigation by the Treasury
Inspector General for Tax Administration. This report has itself
been kept hidden away from public view. While many have requested
copies, so far none have been provided
Treasury Inspector General for Tax Administration's investigation
report - ROI - Number 8-9801-0002 consists of 123 pages of records.
The report concerns the IRS Inspector General investigation of the
IRS Closing Agreement with the Church of Scientology, as mentioned
Press Release IR-97-50, dated December 31, 1997.
TIGTA has thus far declined to provide a copy of this investigation
report, you can submit a request for a copy of the investigation
Inspector General For Tax Administration
Attn: Disclosure Officer
1125 15th Street NW #700
Washington, DC 20005
Fax: 202-927-7059 or 202-927-3621
more about the IRS agreement:
Jacobsen's Essay on Scientology's IRS status
vs. the IRS" by Chris Owens
and the IRS" by Cornelius Krasel
Shadowy Story Behind Scientology's Tax-Exempt Status -
New York Times, March 9, 1997
- St. Petersburg Times, March 11, 1997
Who Can Stand Up?
- New York Times, March 16, 1997
Selling of a Church, Shoring Up Its Religious Profile.
The church has adopted the terminology and trappings of traditional
theologies. But the IRS is not convinced.- Part 2 of the LA
Times series on Scientology -- June 25 ,1990
the Attacker, The Battle with the I.R.S.
Neither Side Blinks in a Lengthy Feud - Part 6 of the LA Times
series on Scientology -- June 29,1990
Research Foundation Reports
of public-domain investigative reports on ties between the
United States government and Scientology.
TIES BETWEEN IRS AND SCIENTOLOGY REVEALED
AND MINISTERS USED TO ENFORCE IRS COMPLIANCE
SECRETS REVEALED: THE 'TAX COMPLIANCE MANUAL' - Part One
SECRETS REVEALED: THE 'TAX COMPLIANCE MANUAL' - Part Two