The present IRS scandal didn’t start with the Obama administration. Nixon had his “Enemies list,” and it was the IRS that brought Al Capone to heel, not the FBI. Following is an excerpt from Chapter 8 of my book, The Trail of Blood Revisited that gives the details of how the Internal Revenue Service removed the tax-exempt status of the Indianapolis Baptist Temple, in Indianapolis, Indiana in May of 1995 and published it in their May IRS IRS Quarterly.
They did it in order to punish us, thinking that it would destroy the church financially. It actually had the opposite effect, in fact the giving increased which showed that the members were not giving for the tax benefits but unto the Lord. The church had actually given up it’s exempt status voluntarily in 1984 but the IRS doesn’t recognize this status on the part of a church or an individual, only if the IRS does it unilaterally. The following articles were from the July 8, 1995 Indianapolis Star. There was also a headline article in the Evening Indianapolis News
IRS Officially Removes Baptist Temple Tax-Exemption May 1995
THE INDIANAPOLIS STAR
July 8, 1995
Southside church loses state tax-exempt status
Baptist Temple lost federal status as well.
Why Did the IRS Persecute the Baptist Temple by Removing Tax Exempt Status that the Congregation had Relinquished in 1986?
Because the IBT congregation would not recognize the jurisdiction of the IRS over the affairs of the church. Following are the twenty-two questions that the IRS sent to IBT demanding an answer. If we had answered them, we would have lost favor with God. If we didn't answer them, we would have lost favor with the IRS.
22 Questions the Baptist Temple Refused to Answer Pertaining to a Period of Time from January 1, 1991 to May 31, 1994
1. Provide a detailed description of your current activities. Have there been any changes in your activities. If so please describe the changes.
2. Provide copies of all of your organizing and operational documents, including, but not limited to Articles of Incorporation, Constitution, By-Laws, and/or Trust Document.
3. List your sources of income, donations, gifts, and tuition in excess of $100.
4. List your current governing board members, and officers. How are they elected or appointed? Have any board members, officers, pastors, or assistant pastors resigned or been removed? If so, list them and provide the dates of their resignation or removal.
5. List your staff, including but not limited to all pastors, assistant pastors, counselors, educational directors, teachers, office, clerical, and maintenance personnel. Provide their position descriptions and the total amounts you paid them. Our records indicate that you did not file Forms 941 to report the amounts paid to these persons. Please explain your reasons for not doing so.
6. Do you pay cash to your staff, including but not limited to all pastors, assistant pastors, educational directors, counselors, teachers, office, clerical, and maintenance personnel? If so, why do you use cash rather than checks?
7. Do you pay for any of your supplies, insurance, utilities, or similar expenses in cash? If so, why do you use cash rather than checks?
8. Did you provide parsonage allowances or other housing to anyone? If so, list the persons who received the allowances, the housing locations, and the amounts involved.
9. Did you make grants, gifts, or loans in excess of $100? If so, list the recipients and the amounts received. Include a description of grants, gifts, or loans of property such as automobiles or homes you may have made, and explain the purpose of each of these transactions.
10. Describe any other compensation arrangements you had such as free tuition and deferred compensation.
11. Did you use independent contractors? If so, please provide copies of any Forms 1099 which you filed for 1993. If you did not file any Forms 1099, please explain why.
12. Provide the addresses and descriptions of all the real estate you have owned, leased or had an interest in, indicating how such properties are/were used. State if income is/was generated from such property. State if such properties are used by anyone else. If so, describe how they are used.
13. Did you transfer any property with a fair market value in excess of $100 to any officer, trustee, employee, or member? If so, list the properties, the date of transfer, the parties involved, selling price, other consideration provided, and explain the purpose of the transfer.
14. Did you transfer any property with a fair market value in excess of $100 to any other entities or individuals? If so, list the properties, the date of the transfer, the parties involved, the selling price, or other consideration provided, and explain the purpose of the transfer.
15. Describe your fund raising activities and submit representative copies of literature you have distributed soliciting contributions.
16. Is it your position that your members should not file federal income tax returns or pay federal income tax? Please explain.
17. Are you associated with any other entities or individuals which advocate noncompliance with the federal tax laws? If so, please list them.
18. Please describe any federal, state, and/or local laws or public policies with which you advocate noncompliance.
19. Please describe any incidents in which your officers or members were arrested for noncompliance with any laws with which you advocated noncompliance.
20. Did you intervene in any political campaign on behalf of, or against any candidates for public office? If so, please describe the nature of your involvement and the type of support you provided. Include any instances in which political candidates may have been permitted to speak at your facilities rent-free. If any political candidates did pay consideration for the use of your facilities, please list the candidates, the dates, and the amounts involved.
21. Do you operate your school under a non-discriminating policy as required by Revenue Procedure 75-50? If so, please provide a copy of your written policy statement and a copy of the latest newspaper or other announcement informing the public of this policy. If you do not comply withy Revenue Procedure 75-50 please explain why.
22. Do you file Form 5578, Annual Certification of Racial Non-discrimination for a Private School Exempt from Federal Income Tax? If so, please send us a copy of the most recently filed form.
It should be obvious to the most casual observer that tax exemption isn't an unalienable right protected by the First Amendment, but rather a privilege granted by the government, and maintained by the IRS. And, in order to receive this benefit the benefactor church must meet certain responsibilities that include the following as revealed by the above questions.
The church must keep detailed records of all activity, financial transactions, including a list of donors who give as much as $100 over a three year period, and a list of those that receive alms gifts from the church.
The church must also be an informer as to its pastoral and ministerial staff. It must issue W-2 Forms on all who serve at the church and 1099 Forms for all evangelists and missionaries, which means that no one can serve the church in any capacity if they receive love gifts without providing a Social Security Number.
The church cannot use cash except for a few small benevolent purposes, which means that it has to have an Employment Identification Number and secure a bank account in which all funds must be deposited and from which all expenditures must be paid. All fund raising activity and promotions must be submitted to the IRS for approval and supervision.
The church must be a conduit to collect and remit withholding and FICA (social security) taxes. All laws, federal, state and local must be complied with regardless of what they may be or will be in the future. Public policy, regardless of what it is or will be, must be espoused, that includes support for abortion on demand, sodomy, socialistic economic schemes and a myriad of other obnoxious things.
The church must also be neutered as to any influence in the contemporary life of the community or nation by interjecting its opinion in the area of politics or the election of candidates either pro or con. Neither can the church engage in discrimination of any kind which means that it is subject to the 1964 Civil Rights legislation.
The church must also exist and operate as a public charity, which means that it must please the community rather than God. Could it be that the explosion of community churches all over America reflects this new understanding of community and the church?
Articles about IBT From Indianapolis Star and News Found in IRS Files via Discovery
The following headlines reflect articles that the IRS has kept on the Baptist Temple and its former pastor dating back to 1971.
· Baptist High School to stress Bible - 1971
· Rev. Dixon fights day care License - 1978
· Church Plans tech school - 1978
· Pornography target of downtown rally attended by 1000 - 1981
· Rev. Dixon opposes lottery Bill - 1983
· Churches to fight encroachment - 1983
· State tax laws may collide with church - Dixon - 1985
· Group to obey Jesus, not government - 1986
· Dixon opposes Gov. Orr on schools - 1987
· Gays urge panel to include them in anti-bias bill; it was opposed by Rev Greg Dixon – 1990
There were many more articles that would be redundant to add them to this list. You who are reading this can get the picture. This is the reason that the Biblical Law Center, of which I am the National Director is trying to help churches to organize and reorganize in a manner to free themselves from their 501 (c) (3) status so they will not be obligated in any manner to this vile and wicked rogue agency that gives unconscionable bonuses to “higher ups” to destroy the enemies of the State. Tell me that 1984 has not arrived. For information on “Getting Free from 501 (c) (3) please go to the Biblical Law Center Web Site at: wwwbiblicallawcenter.com.
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