CONTENTS 2. (Motivations: In classified version only.) 3. Staff Investigative Group internal memorandum describing In- ternal Revenue Service (IRS) rules and regulations concerning tax exempt status of religious organizations.. 2. Executive Orders 11905 and 12036 limiting and defining CIA responsibilities with respect to intelligence gathering on U.S. ponents and media intimidated, public officials used: In classified wareness of Danger, Predicting the Degree of Violence: In classified S. Customs Service Investigation: In classified version only.) nspiracy to Kill Representative Leo Ryan: In classified version e Privacy Act and the Freedom of Information Act_‒‒‒‒‒ 1. (In Classified version only.) 2. Correspondence between the Department of State and Hon. Clement J. Zablocki. (The correspondence contained in this Appendix was generated as a result of the February 2, 1979, letter from Hon. Clement J. Zablocki to the Department of State found in Appendix I-C-1.) --- -- 3. Department of State implementation of the Privacy Act and the (a) Materials provided to the Staff Investigative Group stemming from the February 2, 1979, letter from Hon. Clement J. Zablocki. (Materials include guidelines and information provided to U.S. Embassy in George- town, Guyana with respect to implementation of Privacy Act and Freedom of Information Act and internal memoranda regarding Department of State processing of Privacy Act requests made by legal counsel for the People's Temple.) (b) Staff Investigative Group internal memorandum de- scribing the general provisions of the Privacy Act and the Freedom of Information Act and analyzing the Department of State's performance in implementing (c) Staff Investigative Group memorandum elaborating on the provisions of the Freedom of Information Act and exemptions from agency disclosure of information under the Freedom of Information Act____ Role and Performance of the U.S. Department of State: In Classified Involvement of the Government of Guyana: In Classified version Page J. Social security and foster children. 1. (In classified version only.) 2. Correspondence between Hon. Clement J. Zablocki and the De- (a) December 11, 1978, letter from Hon. Clement J. Zablocki (d) February 12, 1979, interim response from the Social Secu- (f) Listing of social security beneficiaries who were in Jonestown, number of social security beneficiaries who are confirmed deceased, total of social security beneficiaries who were in Jonestown that are deceased but remain unidentified and total of social security beneficiaries who were in Jonestown that are known survivors... – – (g) April 29, 1979 letter from the Department of Health, Education, and Welfare to the Staff Investigative Group.... 3. (In classified version only.) K. (Future Status of the People's Temple: In classified version only.) is an auxiliary of a church exempted in a group ruling or is a bogus auxiliary TYPES OF TAX-EXEMPT ORGANIZATIONS There are about 21 or 22 categories of tax-exempt organizations in Sectio 501. Section 501(c)(3) groups are one of these categories; however, 501(c)(3) groups are exempt from certain taxes other Section 501 groups are not (e.g., taxes on private foundations) and certain employment taxes. Section 501(c)(3) groups include groups organized and operated exclusively for one or more of the following purposes: religious, charitable, scientific, testing for public safety, literary, educational, fostering national or international sports competition, or prevention of cruelty to animals. While some guidance exists in IRS regulatin for defining some of the 501(c)(3) groups, including definitions of charitable, educational, and scientific organizations, no such guidance exists for religious organizations. Guidance to IRS administrators is not fixed in the IRS Code cr IRS rules and regulations. Presently, operational guidance is in the form of a speech by the IRS Commissioner, Jerome Kurtz. Kurtz listed in his January 9, 1978 speech, 14 characteristics that are applied on a case-by-case basis. They include a distinct legal existence, a recognized creed and form of worship, established places of worship, regular congregations and religious services. add to the definitional problem, the IRS does not maintain an active roster of churches per se. There is only a master list of group rulings which have been made granting tax exempt status to churches and their integrated auxiliaries. OTHER STATUTES OF THE INTERNAL REVENUE CODE RELATED TO CHURCHES Other provisions of the Internal Revenue Code which provide special advantages to churches include: Sec. 403(b) This section, which relates to annuity plans offered by churches. exempts from taxes taxable income contributed by an employee of a church to a church-sponsored annuity plan. (1.e., employees of a church may elect to have their wages garnished to pay for premiums on an annuity plan offered by a church. These wages are excluded from the gross income of the employee for each taxable year such contributions are made. Sec. 414(e) This section exempts churches from vesting standards with respect to annuity plans (vesting standards involve certain requirements employers must meet in the operation of an annuity plan, including steps to keep the plan solvent.) Churches, in order to protect their employees, may elect to have such vesting standards apply through Sec. 410 (d) of the Code. Section 1402 (c) (4) - exempts from the definition of "trade or business" relating to self-employment income, the performance of service by a duly ordained commissioned or licensed minister of a church in the exercise of duties required by such order. The exercise of duties by a minister is interpreted broadly by the IRS to involve anything that could be interpreted as related to the duties required of a minister of a church. The potential for abuse would seem to be substantial. T S 402 (g) This section provides individuals the right to file a state4029) conscientiously objecting to acceptance of any public or private including Social Security payments, which would pay benefits to him. ary of Health, Education, and Welfare must certify that it has been ce of the sect to which the person has been a member to make provision ent members and such section or division has been in existence at all e December 31, 1950. 1402(e) - This section provides duly ordained ministers of a church to atement (form 4361) conscientiously objecting to the receipt of public 2 insurance payments to him with regard to services performed by him. ion from the tax imposed on an individual receiving insurance payments rovided to the individual filing this form. 512(b) (12) (14) · This subsection allows a deduction the lower of $1,000 ross income derived from any unrelated trade or business regularly carried ch local unit for each parish, individual church, district, or other it of a diocese, province of a religious order or a convention or associachurches. Additionally, under Sec. 512(b) (14) all gross income derived rch from a trade or business and all deductions directly connected with ying on of such trade or business are exempt from taxes if they were on by the church in question before May 27, 1969. BILITY OF CHURCHES GRANTED TAX-EXEMPT STATUS countability with respect to the tax-exempt status of churches is limited fact that the statutes requiring the filing of forms detailing the actiof 501(c)(3) groups need not be filed by churches. For example, sec. 508 Internal Revenue Code sets forth the requirements for notification to the a group seeking tax exempt status under sec. 501(c)(3). The form required 23, is a general descriptive document detailing activities and operational tion and includes various organization documents. Form 1023 provides the information for IRS Publication 78, a listing of all 501(c)(3) groups, utions to which are tax deductible. While it behooves churches to file 023, since its parishioners would receive faster processing of their claims x deductible contributions, churches are not required to file Form 1023. imilarly, sec. 6033 also requires an annual 990 to be filed by all 501(c)(3) This form, more detailed than Form 1023, includes a group's income, e sheet, list of substantial contributors and other detailed information. 90 is a very important document since it is open to public scrutiny and formation contained in it often provides the IRS with leads for possible to prevent abuses of the tax-exempt status. Like Form 1023, churches are equired to file Form 990. In performing audits on churches, the IRS is also restricted by sec. 7605(c) e IRS Code, mandated by the Tax Reform Act of 1969. Although the Act permits hes for the first time to be taxed on unrelated trade or business income, the culty of proving a church is involved in such an activity or defining what related income is great. Before the IRS can conduct an audit on unrelated or business income of a church, they must first write to the church on two ate occasions, detailing their evidence and asking the church for clarification. e church does not cooperate, the IRS auditors must seek the permission of the regional commissioner in the region the church is located to proceed with an If permission is granted, IRS auditors still must wait 30 days before comng the audit. |