Court Tosses Challenge to Faith Groups’ Distinct Tax Breaks

A federal court has dismissed a lawsuit by atheist organizations that took aim at separate tax-exemption rules for religious and secular nonprofit groups, Religion News Service reports.

American Atheists and two co-plaintiffs argued that the Internal Revenue Service discriminates against nonreligious groups by holding them to stricter filing standards than churches and other faith nonprofits. Religious organizations are not required to file 990 financial disclosure forms with the IRS.

The U.S. District Court in Kentucky ruled last week that the atheist groups had not shown they suffered specific harm as a result of the different standards and that they had no standing to bring the suit because they could apply to the IRS for designation as religious organizations. The tax agency has granted nontheistic groups status as faith nonprofits.