Atheist Organizations Lose Challenge to IRC/IRS Differing Treatment of Churches

In American Atheists v. Shulman, the U.S. District Court for the Eastern Division of Kentucky rejected three atheist organizations’ contentions that the IRS unconstitutionally discriminates against non-religious tax-exempt organizations.  Specifically, the Atheists alleged that the IRS’s differing treatment of churches as opposed to  other tax-exempt organiations was unconstitutionally.  Specifically, the Atheists requested that the Court issue a judgment “[d]eclaring that all Tax Code provisions treating religious organizations and churches differently than other 501(c)(3) entities are unconstitutional violations” of the Equal Protection laws of the Fifth Amendment, the First Amendment and the Religious Test Clause of Article VI, §3 of the Constitution. The Atheists claimed “upon information and belief a number of atheist organizations have tried to obtain IRS classification as religious organizations or churches under §501(c)(3) or to otherwise obtain equal treatment,” and “most of those applications and attempts were rejected by the IRS.”  However, the Court found that the Atheists admitted in pleadings that they themselves had never sought recognition as a religious organization or church under §501(c)(3).  The Atheists responded that they have not applied for exemption as a religious organization or a church because seeking such a classification would “violate their sincerely held belief.”

Nevertheless, the Court found that the Atheists lacked the necessary standing to bring the suit, in part because they could have applied for religious  designation.  The Court concluded that the Atheists failed to establish any injury-in-fact and their assertion that they would fail to qualify as a church or religious organization was “mere speculation.”  To the contrary, stated the Court, “[a] review of case law establishes that the words ‘church,’ ‘religious organization,’ and ‘minister,’ do not necessarily require a theistic or deity-centered meaning.” 

(See also articles in The Salt Lake Tribune, Forbes, and ABA Journal)

Nicholas Mirkay