Scientology's Abuses Violate IRS Regulations

Due to its illegal and unethical actions, Scientology is not eligible for tax-exempt status.

You can find IRS addresses at their web site - or you can call them toll-free at 1-800-829-0433.

IRS Policy: Illegal Acts Disqualify an Organization from Exempt Status

Scientology's illegal actions disqualify the group from tax-exempt status.

According to the IRS web site:

An organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of the exempt purposes specified in IRC Section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. For more information concerning types of charitable organizations and their activities, download Publication 557.

From IRS Publication 557:

Religious Organizations
To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines.

  1. That the particular religious beliefs of the organization are truly and sincerely held.
  2. That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy.

Therefore, your group (or organization) may not qualify for treatment as an exempt religious organization for tax purposes if its actions, as contrasted with its beliefs, are contrary to well established and clearly defined public policy.

From the IRS Internal Revenue Manual:

An organization's activities in furtherance of a religious belief must serve exclusively exempt purposes. See Reg. 1.501(c)(3)–1(c)(1). If the organization’s activities promote a substantial nonexempt purpose, exemption under IRC 501(c)(3) is precluded.

Scientology's Illegal - and Non-Exempt - Activities

A substantial portion of Scientology's activities serve non-exempt purposes.

Harassment:

Scientology spends significant amounts of money on lawyers and private investigators with the sole intention of harassing those who have spoken out against the organization's abuses.

Scientology spends millions of dollars in court to harass critics.

Among those targetted by Scientology PIs since 1993:

These actions follow Scientology policy, which states, ""The purpose of a lawsuit is to harass and discourage rather than to win. ... The law can be used very easily to harass ... If possible, of course, ruin him utterly."

Extortion:

Scientology executives practice extortion on disaffected members and perceived enemies, in accordance with Scientology's policy on fair game.

Holding Members Against their Will:

In the aftermath of Lisa McPherson's death after 17 days in Scientology's custody, Scientology now requires participants to sign a waiver permitting Scientology to hold them against their will, without contact with family or friends.

Fraud:

Scientology makes false representations about the organization and its practices to potential and current members, and pressures members to pay for services they are ineligible to receive.

Interfering with Electronic Communications:

Scientology staffers and volunteers conspired to disrupt computer networks and forged thousands of racist and profanity-laden newsgroup messages under the names of critics of Scientology. The forged messages were traced back to active Scientologists. Former Scientologist Tory Christman (alias "Magoo") has described her unwitting part in this scheme.

Attacking Psychiatry:

Scientology and its front groups (especially CCHR, Citizens Commission on Human Rights) carry out campaigns in furtherance of Scientology's stated goal to "eradicate psychiatry." This raises costs for citizens who seek these types of medical services and interferes with their free access to the best medical treatments. Attempting to influence legislation also makes them ineligible for tax-exempt status.

Write to the IRS and request an investigation of Scientology's illegal uses of tax-exempt funds. Report Scientology's illegal activities and point out that they are thereby disqualified from tax-exempt status - and remember to inquire why the IRS grants Scientology a tax deduction no one else gets.


While you are writing to the IRS, you might want to drop a quick note to your elected officials and the editor of the local paper requesting an investigation into Scientology's illegal uses of tax-exempt funds.