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After decades of arguing that Scientology did not qualify for tax-exempt status, the US tax agency reversed itself in a secret settlement. What caused the complete reversal?

IRS in the News

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January 3, 1998 Church Of Scientology, IRS End Dispute West County Times : Church Of Scientology, IRS End Dispute IRS
January 2, 1998 IRS signals it will probe disclosure of church pact. Wall Street Journal -- Eastern Edition: IRS signals it will probe disclosure of church pact. IRS
January 2, 1998 IRS Signals It Will Probe Disclosure of Church Pact The Internal Revenue Service signaled that it will investigate the disclosure of a closing agreement that gave the Church of Scientology tax-exempt status and settled numerous lawsuits. The agreement between the church and the IRS had remained secret for about four years, until The Wall Street Journal published an article detailing the agreement's terms this week and posted the document on its Internet Web site. Under the pact, the church agreed to pay the IRS $12.5 million, set up a special tax-compliance committee and drop thousands of lawsuits filed against the IRS in exchange for tax-exempt status and the discharge of tax liens, levies, penalties and ongoing audits. IRS, Press
December 31, 1997 Scientology Church Paid IRS $12.5 Million Commercial Appeal: Scientology Church Paid IRS $12.5 Million IRS
December 31, 1997 Scientologists Paid IRS $12.5 Million Contra Costa Times : Scientologists Paid IRS $12.5 Million IRS
December 31, 1997 Church's Settlement With IRS Costs $12.5 Million Greensboro News & Record : Church's Settlement With IRS Costs $12.5 Million IRS
December 31, 1997 Scientology Deal With IRS Detailed Philadelphia Daily News: Scientology Deal With IRS Detailed IRS
December 31, 1997 $12.5 Million Deal With I.R.S. Lifted Cloud Over Scientologists The Church of Scientology paid $12.5 million to the Federal Government in 1993 as part of a settlement with the Internal Revenue Service that granted tax-exempt status to the church and ended a long and bitter battle with the agency. The payment was part of a landmark agreement, whose details had been kept secret until yesterday, that saved the church tens of millions of dollars in taxes and provided Scientology with an invaluable public relations tool in its worldwide campaign for acceptance. IRS, Press
December 30, 1997 Scientologists Settled With IRS For $12.5 Million Ledger Dispatch : Scientologists Settled With IRS For $12.5 Million IRS
December 30, 1997 article about secret IRS deal New York Times (article about secret IRS deal) IRS

IRS in the News

Datesort icon Title Blurb Tags
December 28, 1974 Gerald Wolfe, Barbara Bird, IRS, Scientology-related, files, IRS Building, United States, task. Upon, photocopying, Ms. Bird's o Gerald Wolfe enters the office of Barbara Bird located in the main building of the IRS and takes many Scientology-related documents from her files. He photocopies them on a photocopying machine in the IRS Building, using United States property and paper to accomplish the task. Upon completion of the photocopying, the defendant returns the documents to Ms. Bird's office. (At a subsequent meeting with Mr. Meisner at a Lums Restaurant in nearby Virginia, Wolfe will give Meisner the stolen documents.) IRS, Michael Meisner
December 5, 1974 Mo Budlong, Duke Snider, Snider, 10, IRS documents. says Mo Budlong sends a telex to Duke Snider in response to a telex saying that Snider had received 10 inches of stolen IRS documents. The telex says, "Duke such news brings joy to my heart ARC Absolutely fantastic ARC I can't wait to see the data." IRS
November 7, 1972 Nibs (Lrh's Son) Retracts Testimony in IRS Trial Nibs (LRH's son) records a videotaped interview retracting his testimony against Hubbard in IRS trial. IRS