Tax Court Rules On Disputed Religious Charitable Deductions

In Wilkes v. Commissioner of Internal Revenue, (USTC, April 22, 2010), the United States Tax Court agreed with some, but not all, of the Commissioner's disallowance of claimed religious charitable contributions by Jeffrey and Patricia Wilkes who are members of the Church of Jesus Christ. The Church has no hierarchy, clergy or formal leadership, and autonomous local churches will accept contributions directly only from their members. At issue were contributions to "Needy Saints," and other contributions to church missionaries. Needy Saints are individuals certified by the elders of the local church as deserving of assistance. The Court held that contributions given directly to these needy private individuals are not deductible. However the Court did allow deductions for $12,500 given to two missionaries because they were given to them as agents of qualified non-profit organizations.