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Thread: Mandatory Exception

  1. #1

    Mandatory Exception

    Unincorporated Associations Are Not Unregistered New Testament Churches
    By Dr. Greg J. Dixon
    This is from a website chock full of information about non-501(c)3 congregations and more.


    In a court case in Indiana, where a church held themselves out as an unincorporated association in a property dispute, the judge in his ruling designated the church as an unregistered Baptist church, because of the way the church had styled the case.

    Washington Circuit Court Judge Roger D. Davis in point Number 22 of his decision of March 21, 2005 said that “______Church” is an unregistered Baptist church.” On October 30, 2007, the Court of Appeals of Indiana used the same language in defining Name Withheld (Editor’s note: See the end of the article for the Cause numbers.)

    By doing so, the court has done a great disservice to all of the New Testament churches that are trying to be obedient to Christ in the area of church polity and practice, especially in the State of Indiana. Thankfully, the case sets no precedent because it didn’t go to the Supreme Court of the State. Nevertheless, we feel that it is important that we set the record straight because it involves the doctrine of the New Testament church, and many are following this position and are giving out information in error on this vital issue.

    The subject that we are dealing with, in my opinion, is the most confusing subject among preachers and church folks, and even attorneys that we have to deal with constantly at the Biblical Law Center. For instance, often preachers say to us, “Our church isn’t a 501(c) (3) church because we aren’t incorporated.” We will ask, “Does the church have a bank account, Employee ID Number (EIN), trustees, Constitution and By-laws, conduct an annual business meeting, give tax deductible receipts, file tax-exempt forms, file for mercantile permits, support missionaries through an incorporated missions board, or is the church listed in a Denomination or Incorporated Fellowship Directory, etc.?” If the answer to any of these is “yes,” then even if the church is not incorporated, it has the trappings of a corporation; and besides this, by its very existence it is considered a tax-exempt organization by the Internal Revenue Service according to Publication 1828 – Tax Guide for Churches and Other Tax-Exempt Organizations.

    We do not have the space in this article to try and prove to the skeptics that all of the above are the trappings of corporate activities, and that there are many court cases and examples to give evidence of these facts. Many of them are in my book The Trail of Blood Revisited (Faith Publications – 5th Printing).

    The next error that we keep hearing is the erroneous idea that churches are automatically tax-exempt. Well, this isn’t true, either. Let’s examine this issue further.

    The IRS considers a church to be a legal entity called an “unincorporated association” or “religious society,” even if it isn’t incorporated and will treat it as any other non-profit organization or “public-charity” under Section 501(c) (3) of Title 26 of the Internal Revenue Code at Sec. 508

    Special rules with respect to section 501(c) (3) organization
    (1) Mandatory exceptions. – (a) and (b) shall not apply to-
    (A) churches, their integrated auxiliaries, and conventions or associations, or . . .

    First you will notice that all churches, whether incorporated or not, are considered to be 501(c) (3) tax-exempt public charities according to the IRS. Churches, regardless of doctrine, whether incorporated or unincorporated, are treated the same by the IRS. They do not have to file any forms for “tax-exemption.”

    But it does not say that they have a “Mandatory Tax-Exemption.” Under (1) it says “Mandatory exception.” Now there is a big difference between “exemption” and “exception.” For one, “exemption” is not mandatory, only the “exception” is mandatory. But before we look at the difference, let’s notice the status of the “association.”

    (More/continued)

    Related:
    Last edited by allodial; 11-29-15 at 06:04 PM.
    All rights reserved. Without prejudice. No liability assumed. No value assured.

    "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
    "It is the glory of God to conceal a thing: but the honour of kings is to search out a matter." Proverbs 25:2
    Prove all things; hold fast that which is good. Thess. 5:21.

  2. #2

  3. #3
    Quote Originally Posted by David Merrill View Post
    In other words government must keep its paws off the church.
    Incorrect...

    In other words; be mindful how you style your case and what venue you choose to enter.

    Government will not keep its paws off anything that voluntarily enters its jurisdiction. "Mandatory Exception" is inherent immunity if one knows who one is and one acts as a member of a true church.

  4. #4
    I suspect that David Merrill might be implying that the real and true church would not volunteer in such a way. Anyways, relevantly, in some jurisdictions, the distinction between State sector and the Crown sector are clearly spelled out. In others, one might have to go a bit further to figure that out. But then, the United States is a state too, how can you seriously have posse comitatus without counties or political subdivisions?

    But yes, there might be the issue of waiver of immunity or voluntary entering into a covenant that is enforceable and undesirable.

    ***

    If a fellowship kept its property management activities separate from its worship and pastoral activities, that might remove a lot of jurisdictional snafus.
    Last edited by allodial; 11-29-15 at 11:41 PM.
    All rights reserved. Without prejudice. No liability assumed. No value assured.

    "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
    "It is the glory of God to conceal a thing: but the honour of kings is to search out a matter." Proverbs 25:2
    Prove all things; hold fast that which is good. Thess. 5:21.

  5. #5
    Quote Originally Posted by David Merrill View Post
    In other words government must keep its paws off the church.
    From "Born in Equity" blog:
    Manon-theland Amerika wrote:
    “Back in the day the first installment of the Kings and Queens, the Sheriff was told to leave God’s people alone....


    Onlashuk wrote:
    Now, from what Manon-theland Amerika posted herein above, a new question popped into my mind. That question is, “Are you not under orders to leave the Sons who are free indeed, alone?” Why ask the question this way? First, because this rooted in gospel, and second, because no matter who the contracting officer is, their name, their rank, their office, they are always attempting to collect a TAX! The question is worded in direct association to the parable that speaks of the same.

  6. #6
    Congress used the pronoun "They" so that people could be redeemed.


    They shall be redeemed in lawful money on demand...

  7. #7
    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;

    The IRS regulations are irrelevant as to churches. Tax exempt forms are not even required, you can just claim what you donated. A corporation IS a legal entity that requires certain things to exist and cannot be simply presumed to exist.

  8. #8
    Quote Originally Posted by pumpkin View Post
    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;

    The IRS regulations are irrelevant as to churches. Tax exempt forms are not even required, you can just claim what you donated. A corporation IS a legal entity that requires certain things to exist and cannot be simply presumed to exist.
    Very true...

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    I find it amusing that almost everybody attending these "Centers" calls it "Church".

  9. #9
    Quote Originally Posted by pumpkin View Post
    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;
    The President of the United States is an agent of Congress as "chief executive" over the U.S. government agencies and departments and being that the president of the U.S. Senate is his underlying he is part of Congress. That is, a president presides over Congressional sessions. Who has the veto power? Whose underlying is president of the the U.S. Senate? As a commander in chief he is a commissioned officer--a soldier. It would follow therefore that President of the United States is also prohibited from making laws respecting establishment of religion.

    Quote Originally Posted by BLBereans View Post
    Incorrect...

    In other words; be mindful how you style your case and what venue you choose to enter.

    Government will not keep its paws off anything that voluntarily enters its jurisdiction. "Mandatory Exception" is inherent immunity if one knows who one is and one acts as a member of a true church.
    I meant to add that you do make a very good point in that one would be wise to be mindful how one approaches a given matter or venue.
    Last edited by allodial; 12-02-15 at 01:26 PM.
    All rights reserved. Without prejudice. No liability assumed. No value assured.

    "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
    "It is the glory of God to conceal a thing: but the honour of kings is to search out a matter." Proverbs 25:2
    Prove all things; hold fast that which is good. Thess. 5:21.

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