Judges give thumbs-up to pastors' housing allowance
A federal appeals court on Friday rejected an “atheists’ challenge” to the IRS deduction that allows ministers to have a housing allowance that is not taxable as income.
It was the 7th U.S. Circuit Court of Appeals that overturned a lower court’s decision that found the deduction unconstitutional.
It was a major victor pastors, who could have, together, faced an additional tax liability of $1 billion.
The non-profit Becket, which represented Pastor Chris Butle of Chicago, said it was the Freedom From Religion Foundation, an atheist group, that sued the IRS to end the deduction to ministers for their housing expenses....