The US District Court for the District of Columbia has ordered the dismissal of the legal challenge to the longstanding church exemption to filing the IRS Form 990.
The NonBelief Relief Inc., a non-profit created by the Freedom from Religion Foundation (FFRF), challenged the exemption of churches to filing Form 990 arguing it violates the First Amendment’s Establishment Clause for preference of religion. US District Judge Timothy Kelly ordered the dismissal of the legal challenge due to a lack of standing.
So the dismissal means that churches are still exempt from filing the Form 990 annually. However, expect continued legal challenges in the future once technical hurdles are resolved. (You can read more information about the dismissal and challenge from our partners ECFA)
*The Board of Retirement does not provide legal, accounting, or tax advice. Consult your tax professional for tax consultation.