In their lawsuit, Michael and Marla Sklar of Los Angeles contend the IRS erred by disallowing their tax deduction claim when the agency permits Scientologists to write off the cost of spiritual counseling and instruction on that religion's tenets. "You have a particular sect that's being favored by the state based on religion," said Michael Sklar, an accountant. The case "will have enormous ramifications whatever the ruling is. I didn't do this for the $3,000 that's at stake."
The United States Department of State released its International Religious Freedom Report for 2005, noting issues with Scientology in two countries, Belgium and Germany.