HYPOTHETICALLY SPEAKING, if in the upcoming tax season what if the IRS finds that?

a significant number of say, Utah residents were gifted significant cash gifts from the LDS church that say, were similar in amount to what they coincidental contributed to say, some political campaign, and the IRS were to find this suspicious, could the LDS church be investigated for indirectly supporting said campaign, by means of reimbursing members for their hefty donations?

Update:

As you can tell by my question, I'm clueless about this thing. So there is an entity that would be interested or curious? I'm just interested and impatient, I have no knowledge or means to report anything. I was just thinking that on tax forms and bank records, this stuff would surface, and somebody somewhere might say, Hmmm, interesting that gifts were similar in amount to donations........ just interested.

Update 2:

Plastic Punk - I'm grateful to the Mormons (and the KofC) who gave so generously. They bought themselves a total nation that will have legalized same sex marriage in 10 years because prop 8 passed. If Prop 8 failed, it would have stayed in CA, but now, because it violates the US Constitution, it'll be tossed, and when that happens people can use that as precedent and petition the courts in their states to legalize same sex marriage, and their courts must do it, because there is no law that is above a constitutional amendment.

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  • Anonymous
    1 decade ago
    Favorite Answer

    I wasn't aware of tax laws until this but it seems Mormons wouldn't be taxable even if it was proven that they directly donated. Apparently, churches CAN donate to propositions. they just cannot donate to candidates.

    sucks, don't it?

  • Anonymous
    1 decade ago

    Well, I don't know much about the nuts and bolts of the whole thing. It is true that NPOs file tax returns to the IRS, and it's true that an organization can lose their exempt status by operating as a political organization, and I have heard the rumblings about their involvement in getting CA Prop 8 passed, but I don't know if the line can fully be drawn. I'm not sure how the whole thing was funded (like I said the innerworkings of their support) and I imagine they were smart enough to not directly use the funds, or even in the way that you are saying as distributions that ended up funding the campaign.

    Also, depending on the findings it would be a really crazy case. That is one big organization to suspend or revoke, but a very bad precedent to set by letting it go unpunished. Personally, I would hope that the government would drop the hammer on them to set the precedent that we as a nation take those rules seriously. We should take those rules seriously. I can't speak to the reality of the situation though. I just don't know enough about how it all happened or the procedures of the IRS, or if it would be an issue for the FEC or some other governmental organization. I imagine that there is another body who audits these organizations, perhaps one that is more in the direct charge of policing NPO activities (though I'm just guessing, the IRS seems to be the body that would have jurisdiction over exemption status, but it's an awfully big government and the IRS already has a lot on it's plate).

  • Anonymous
    1 decade ago

    Individuals make gifts. So a church handing out money to individuals would not be classified as gifts.

    As for prop 8, the Mormons already have a black eye and many people are protesting their obviously political activities to the IRS. (The church has quickly mounted an inane response that they didn't participate, that only their members did and they have no control over them.)

  • Judy
    Lv 7
    1 decade ago

    The entity making the donations, indirectly though it might be, to the political campaign would lose their tax exempt status if they have one, if this came to light. Would also be a violation of federal election law.

    The entity might have an interesting time hiding all this on their 990 filing.

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  • 1 decade ago

    There is always the chance that anomalous patterns of donations will trigger an audit. If it occurred, the issues on audit would be:

    1) did the individual claim a political donation as a charitable contribution

    2) were donations to a political cause misrepresented as charitable

    3) were receipts issued for charitable donations when funds were used for political purposes

    4) were charitable donations misappropriated for political contributions

  • Anonymous
    1 decade ago

    If the gifts are more than $10,000 to any individual, then the giver of the gift will have a gift tax due.

    As for the underlying question about political contribution rules being avoided through laundering of funds through church members - the IRS wouldn't be the entity interested in that.

  • 1 decade ago

    I really do not see why any Church should be tax free. It is not like the Church is not a business.

    Source(s): Free your mind from man made gods!
  • Bob F
    Lv 6
    1 decade ago

    Not likely that the IRS would care since collecting revenue is their mission. Sounds like a questionable campaign funding practice but that is a different agency.

  • Anonymous
    1 decade ago

    Well since the LDS church would do no such thing it wouldn't happen. You may not agree with what the Mormons have done, but they have not been dishonest about any of their intentions or the way they have done it.

  • timpe
    Lv 4
    3 years ago

    Wow...you're heavily dilusional. The LDS church grow to be no longer writing out exams to their contributors so as that their contributors would desire to donate it "individually". on the different, the contributors persevered to pay 10% tithing, they persevered to pay speedy alternatives, and that they made contributions to prop 8 to boot to those issues. there grow to be no rebate going on. you have precisely 0 info to your declare.

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