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Did Mormons Benefit From The IRS Scientology Deal ?

Quicklink submitted By       Message Amanda Lang     Permalink
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Image from a quicklink The Tom Cruise -- Katie Holmes story inspired me to take a look at the tax history of Scientology. Scientology and the IRS engaged in what I called a Thirty Years War, which was ended by a secret closing agreement in 1993. The agreement was leaked in 1997 and, as I found from the reaction to my post, is still controversial. Probably the most controversial part of the agreement was that Scientologists were allowed to deduct the fairly substantial "fixed donations" they are required to make to experience auditing sessions.

The reason that allowing the deduction of "fixed donations" for auditing seemed so odd, was that the IRS had extensively litigated the issue and ultimately won it in a Supreme Court decision. Why would the Service crumble on that only a few years after winning it in the Supreme Court ?

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