wfn.org | Existence of clergy housing allowance threatened

["Communication Ministries" <wshuffit@cm.disciples.org>]

Date:  April 10, 2002
Disciples News Service
Christian Church (Disciples of Christ)
E-mail: news@cm.disciples.org
Web: http://www.disciples.org

Contact:  Mariane Scott, secretary/director of
communications
Pension Fund of the Christian Church (Disciples of Christ)
(317) 634-4504 e-mail: mscott@pension.disciples.org

02a-27

	INDIANAPOLIS - Pastors who claim part of their income as
housing allowance are encouraged to contact members of
Congress to prevent the elimination of this long-standing
tax benefit.

Unless Congress acts soon, a federal court appears poised
to strike down the clergy housing allowance as
unconstitutional.  The result would cause an unprecedented
tax increase and burden for clergy, who can exclude from
taxes a portion of income they attribute as housing.

If you value your clergy housing allowance tax exclusion,
contact your U.S. Senator and Representative by telephone,
e-mail or U.S. Postal Service today.  Tell them:

	*  A pending court case is threatening to increase taxes
on ministers by eliminating our clergy housing allowance
tax exemption.

	* Congress can act to prevent the loss of clergy housing
allowance.  Without prompt action, clergy may be forced to
pay an unprecedented $500 million more in taxes annually.

	* Clergy housing allowance has been part of our tax laws
since the early 1900s.  This is important to me because . .
. 

	* Please support corrective legislation to prevent the
courts from eliminating our clergy housing allowance. U.S.
Rep. Jim Ramstad (Minnesota) is a sponsor of a bill being
introduced to the House to preserve clergy housing
allowance.

	*  Thank you for your time, interest and support to
preserve clergy housing allowance . . .

Contact Information

If you need contact information to reach a member of
Congress:

U.S. House of Representatives
	* By telephone call (202) 224-3121
	* By internet see www.house.gov/house/MemberWWW.html

U.S. Senate
	* By telephone call (202) 224-3121
	* By internet see
www.senate.gov/senators/senator_by_state.cfm

You may find e-mail as your most effective method of
contact.

Background

Until recently, a long-standing Internal Revenue Service
ruling has limited the amount of income that clergy can
exclude as housing to the fair market rental value.  In a
recent Warren v. Commissioner, 114 T.C. 23 (2000), a
taxpayer challenged this limit and won in U.S. Tax Court. 
The IRS appealed this decision to the Ninth Circuit Court
of Appeals.  Rather than deciding the narrow interpretation
in the Warren decision, the court has turned the case into
one that challenges the constitutionality of the clergy
housing allowance.

Without intervention, the Ninth Circuit Court of Appeals
could strike down clergy housing allowance as
unconstitutional as early as this spring 2002.  If this
occurs, clergy of all faiths could face an immediate tax
increase of $500 million annually.

The Pension Fund of the Christian Church (Disciples of
Christ) has followed clergy housing allowance issues and
the recent court case very closely as a member of the
Church Alliance, an ecumenical coalition of 32 pension
boards from Protestant, Catholic and Jewish denominations
that promotes legislation to strengthen church benefit
programs.  Currently, the Church Alliance is working with
members of Congress, the courts and federal agencies to
clarify the statue that clergy housing allowance is limited
to the fair rental value of a house.  Securing the original
IRS interpretation would settle the pending court case
without adverse tax consequences on clergy.

You will find further information on the ELCA Board of
Pensions web site at www.elcabop.org.

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