This decision does not come as a surprise as the same judge issued a similar ruling back in 2013 before the case was dismissed by a higher appeals court on the technical grounds of standing.

At this point, the court has issued its ruling simply declaring the housing allowance is unconstitutional but without any damages or other remedies awarded, so there is no immediate effect on ministers who are eligible for the housing exclusion under current law.

Additionally, it is likely the district court’s decision will be appealed, and a higher court will have to determine whether FFRF has standing on the facts of this case, and if there is standing, whether it agrees with the lower court that the housing allowance is unconstitutional.

<  Back

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com

REQUEST INFORMATION

Complete the request form and a clergy tax, payroll or HR advisor will contact you

Click Here