CARES OF THE CHURCH

A Church with Tax Exemption
Is Not a Tax Exempt Church

(Author Unknown)

During recent Senate hearings on Senate Bill 557 (1990), the so-called "Civil Rights Restoration Act," it was noted that Senator Kennedy and other supporters consistently referred to "religious or church organizations" whereas opponents spoke of defending "religious freedom" and "rights" of the Church. The word "organizations" is emphasized because the use of this term may be the key to government meddling in the affairs of the Church.

Most people believe a Church that has tax exemption is a "tax-exempt church." They do err greatly. A church that has tax exemption is not a tax exempt Church ... it is a tax exempt "organization." A "religious or church organization" is a "corporation" that "functions" in a "legal" capacity, doing "business" as a church. The IRS is fully aware of this distinction, because all of their publications reflect it. Nowhere do they refer to "tax-exempt churches." They always refer to religious or church "organizations." Surely, Congress understands the distinction as well?!

A Church that voluntarily initiates an "application" to the State for "corporate" status obtains "limited liability" and "tax exemption." It has petitioned the State to dictate it's right to exist and prosper. Thus, the Church consents to a change of its status; from a "lawful" assembly of private citizens to that of a "legal" gathering of public subjects.

The Church (a congregation of believers) does not have rights granted by the Constitution.

It has inalienable rights granted by God that are "secured" by the Bill of Rights to the U.S. Constitution.

Incorporated churches and artificial persons (Corporations) do not have "inalienable rights" granted by God that are "secured" by the Constitution.

They only have such rights, privileges and immunities, as granted to entities created by the State.

The U.S. Supreme Court understands corporations are creatures of the State, as the Court has stated:

"A corporation is an artificial being, invisible, intangible, and existing only in contemplation of law. Being the mere creature of law, it possesses only those properties which the charter of its creation confers upon it, either expressly, or as incidental to its existence. These are such as are supposed best calculated to effect the object for which it was created. Among the most important are immortality, and, if the expression may be allowed, individuality; properties by which a perpetual succession of many persons are considered as the same, and may act as a single individual. They enable a corporation to manage its own affairs, and to hold property, without endless necessity of perpetual conveyances, for the purpose of transmitting it from hand to hand. It is chiefly for the purpose of clothing bodies of men with these qualities and capacities, that corporations were invented and are in use."

  Dartmouth College v. Woodward,

        4 Wheat. Rep. 634  Osborn et.al.

     v. The Bank of the United States,

                    9 Wheat 740 @ 767  

"A corporation is a creature of the state. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises.. . Its powers are limited by law ... Its rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation."

          Wilson v. U.S., 221 U.S. 382 

"... Corporations are not citizens ... The term citizen ... applies only to natural persons ... not to artificial persons created by the legislature..."

    Paul v. Virginia, 8 Wall. 168, 177 

     (See also the Opinion of Field, J.,

         in the Slaughterhouse Cases,                               16 Wall.36,99)

"Whenever a corporation makes a contract it is the contract of the legal entity ... The only rights it can claim are the rights which are given to it in that charter, and not the rights which belong to its members as citizens of a state."

        Bank of Augusta v. Earle,

                         13 Pet. 586 

"A corporation can only appear by its attorney or solicitor, duly authorized; and if this authority is not apparent upon the face of the record, the decree is erroneous, and cannot be supported."

      Osborn et.al. v. The Bank

                of the United States,

        9 Wheat 740 @ 767 

According to IRS Publication 557, the instruction manual for organizations seeking recognition of tax exemption under section 501(c)(3) of the Internal Revenue Code, in order to be an "organization" in the legal sense, it is necessary to incorporate.

Black's Law Dictionary, 5th Ed., defines "Organization" as:

"Organization includes a corporation or governmental subdivision or agency, business trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity."

                         UCC 1-201(28) 

Notice that all of the entities in the definition are government franchised, under the jurisdiction of the Uniform Commercial Code (UCC) which has been "Codified" into law within each state. The definition is sound evidence that a corporation (even if it functions as a church) is recognized by law as a commercial and public activity. An incorporated church, "legally" is a commercial or public activity. Didn't Jesus say that His house was not to be a house of merchandise (commerce)?

"And [Jesus] said unto them that sold doves, Take these things hence; make not my Father's house an house of merchandise."

                             John 2:16 

Since incorporated churches must register with the State tax commission as an "organization," most States will not permit exempt status until the Church applies for and obtains an IRS 501(c)(3) status ruling. As long as the church "organization" toes the government "public policy" line and performs according to the terms of the charter (remaining non-political and non-controversial), it retains its tax exempt status without hassle. Of course, that means the "church" must comply with every nit-picking demand passed by government that applies to any public entity ... including humanist doctrines of a "One World Caesar."

IRS Publication 557 stipulates that:

"Sec.508(c) of the Internal Revenue Code provides that churches are not required to apply for recognition of section 501(c)(3) status in order to be exempt from federal taxation or to receive tax deductible contributions ..

"Churches are automatically exempt from Federal income tax. That contributions to churches are deductible by donors under section 170 of the Code."

If Churches are "automatically exempt," then why would they be so dumb to apply for exemption? Exemption or immunity is a government grant afforded only to certain classes of juristic persons. Law Dictionaries that define "exempt" and "immune," plus Webster's 1828 Dictionary for the word "exclude" will provide you with a clearer understanding of what is being said here.

The First Amendment PROHIBITS government from making any law for or against the exercise of "religion." Laws that grant special benefits for religion are just as bad as laws enacted against religion.

The free exercise clause DOES NOT make the Church "immune" or "exempt" from anything. It excludes un-franchised Churches from the "legal" jurisdiction of man, but not from the "lawful" Common Law of God. A Church that fully retains its First Amendment status is "lawfully" and automatically "excluded" from any form of direct taxation or public laws governing business franchises.

When citing the First Amendment, it should be considered in all its parts, Freedom of Speech, Press, and Assembly are equally as important to the Church as any other part. Any law that infringes upon the inalienable right of pastors or believers saying or teaching whatever is proper and sound according to God's word, including His commandments on the unlawfulness of homosexuality, abortion, pornography, miscegenation, taxation and evil doings of government, etc., must be considered null and void. The same holds true for the printed word. It must be concluded, that for religious free exercise to exist, free choice as to whom may or may not assemble in a private setting must be upheld. A free un-incorporated Church cannot be held to the standards of a corporation doing "business" as a church.

A Church congregation is a private assembly of individuals, coming together as a family, to worship their Lord. Biblical worship is not a "public" activity. Jesus Christ, not the State ordained the assembling together of believers.

Legislatures pass laws effecting juristic entities as a safeguard to the "General" health, safety and welfare to the public as a whole. Congress has no authority to grant "special" benefits or privileges to un-enfranchised Churches or religious activities. The IRS only authorizes such "privileged" exemptions to churches that are incorporated as organizations. When a Church possesses such "benefits," it is because it has petitioned and accepted the State's franchise. As a "legal" organization, the Church removed itself from the protection of the First Amendment and is no longer free. As a subject of Caesar, the Church is rendering unto Caesar that which is God's.

It is the Church, not the State, that has transgressed the barrier separating Church and State. The greatest single thread that binds the Church to government is the act of "incorporation."

Remember this is not legal advice.

We are Church Educators of the Law of God, and the Law of the Land.

Our Supreme Law is the bible, and our Supreme Man's law is

"The Constitution of the United States of America"

not just the "United States"

There is a big difference in the two.

If it says only United States, and leaves out of America, it is not what it makes you think it to be.

They are totally separate by and of Law, start looking at documents in the future that you may be enlightened.

We pass along our knowledge to you as best  we understand it, as Church Educators.

We areThe Sovereign Inhabitants of this land.

We are the true electors in each of our several states of America.

This is not to beconfused  with voters, as there is a big difference between Electors and Voters.

We are not attorneys, judges, counselors of or at law in any manner whatsoever.

We are within our own realm of authority as Church Educators, teachers, exorters, elders of knowledge, and operate under the Authority of God Whom granted us our Inalienable RIGHTS.

God The Supreme Sovereign alone gave us such, and he therby is the only One Whom can remove such.

The following Information was found during research on church, taxes, IRS, IRC Code, and the constitution.

It's about a real Lawyer named Tom Cryer who fought and won against the IRS. I say real as so many buy the hook, line and sinker on "Case Law" instead of fighting on the actual law(s) and on constitutional laws of the state and federal government.

Additionally, to the Famous United States of America's Constitution each state has it's own constitution and some are extremely well written and give people in that state a lot more rights than the Federal Constitution does and goes into great detail.

Some time when you have a few extra minutes or hours, take the time to google, bing, or yahoo search engine's for your states constitution, and look for an exact word for word document and then look for a blacks law dictionary and look up the legal meaning of the words at the time of the passing of your states constitution.

You will find that legal language is close to a foreign language to you or it may be totally foreign.  I have seen words such as "Perfect" mean flawless and in other places it means to be knowledgeable and mature in an area.

Perfect in the Bible means to be grown up in the Lord, mature, to fully understand.

A signature means to be totally and fully understanding, as well as abiding in the above sentences, paragraphs, and pages prior to where you signed.  If you don't understand, agree, or are pressured, under duress, or are tricked, or the meanings are so broad, then what you have is an autograph, not a signature. 

We are told an autograph has no legal enforcement, only an authenic signature has the force and authority of law.  We, as Church Educators, have a duty to God and Man to freely give as we have received. We also believe you should seek legally recognized attorney's or Judges advice before making any decisions in the legal area.

Tom Cryer is a knowledgeable attorney and there are many more out there who know the true law(s) and can help you with whatever issues you may wish advice on.  We give no advice outside of our realm of authority given to us by God Almighty.

We do not make any recommendations of Attorneys, Judges, Legal Scholars, or Legal Professors, nor do we speak against any, for that matter, under normal circumstances. We may in the future have some legal Officials we will recommend to you or tell you that we would not use certain one's personally for whatever the reason, but as always it would be up to you personally to decide.

This information is here to educate you about real life events, and keep you up to date on educational, tax, IRS, IRC Code, and church issues.

Constitutional History in the Making Longtime Shreveport , Louisiana , attorney, Tommy K. Cryer, is no stranger to conflict and controversy.  The Hall of Fame attorney, an honor graduate of LSU Law School and member of the prestigious Order of the Coif, has a reputation for taking on issues no one else would and, on a number of occasions, he has made new inroads in the legal world. 

But now he has thrown down the gauntlet in front of the mother of all 800 pound gorillas, the Internal Revenue Service, and the mama gorilla has picked it up.  The only thing certain now is that someone is going to be hurt.

The story began over a decade ago when a friend told Cryer that the income tax was a sham.  Cryer did not believe a word of it and thought his friend had gone off the deep end.  Learning that his friend had decided to stop filing tax returns, Cryer determined to research the matter, show his friend where he was wrong, and keep him from getting in trouble with the IRS.  That is how a two-year research project began, but it did not turn out the way Cryer expected.  Sporting a wry grin, Cryer said "That just goes to show you that no good deed goes unpunished."

His research not only included the tax laws themselves, but went past the first income tax in 1861 to the drafting of the Constitution and included reading hundreds of cases, Congressional archives and tax laws from 1913 to present.  Cryer learned that although his friend had only a piece of the picture, he was right.  "The Tax Code and its regulations are carefully and," he adds, "ingeniously crafted to deceive," said Cryer.  He explains that the answer is not in what the laws say, but rather in what they do not say, and those provisions that are revealing are either hidden within tons of verbiage or behind double and triple negatives.  And, more importantly, he says, he knows why.

So Cryer decided he would also stop filing returns and would challenge the IRS if and when it came to call.  Cryer said "Once you've taken an oath to uphold the Constitution and the law, obeying the law is only half the job.  You also have to be willing to fight for it.  I've not only sworn to fight for the Constitution as an attorney, as a former officer in the Army
I've sworn to die for it." 

In 2001 they came, demanding information and returns.  Cryer advised them that if they could show him any law making him liable or making his revenues taxable he would file any tax returns required by the law. 
They could not show him any law.

Instead, the IRS began to pelt Cryer with a series of summonses, gathering up all banking records.  It even subpoenaed Cryer's secretary into the office for interrogation.  But Cryer did not budge.  Frustrated, the IRS called in their criminal investigations division, CID, and Cryer told them the same thing, "Show me the law that makes me liable or my revenue taxable and I will file." 
They could not show him any law.

CID began the summons pelting all over again, but Cryer filed a petition to quash the summonses, which even included summonsing his college and law school records from almost forty years ago.  "I suppose they thought the records would show I was some kind of kook or an idiot, but all they would have found is that I graduated from college in only three years and that I graduated from
law school in the top of my class." Cryer said. 

So, CID called in the Justice Department (DOJ) and the sabers began to rattle.  Cryer met with the Assistant U. S. Attorney and an official of the IRS and reminded them that all they need do is show him the law.  They could not show him any law, either. 

"The CID and DOJ both responded only with 'your position is frivolous.'  I had never stated a position, so how could they know whether it was frivolous?" Cryer said, "Imagine my sending you a bill for $1,000 and when you call me and ask what the bill was for I simply said, 'that position is frivolous, just write the check and send it in.'  What would you say?  Would you write the check?"

"After that they circled for awhile, apparently not sure what to do with or to me," he continues, "but when I went public with a book I'm writing, LIBERTY LOST, A Treasure Map to Buried Freedom, about how the federal government has escaped its constitutional limits and how to put it back, that broke the impasse.  Within two months they accused me of tax evasion.  Do I look like Al Capone?  Well, I am a bit overweight and he was kind of chubby, too."

The two count indictment accuses Cryer of concealing income in a trust in 2000 and 2001, keeping himself "below the radar."  But in 2001 he was not only on the radar, he was in the cross-hairs.  Cryer, whose wife, Carolyn, was severely disabled, was worried that if anything happened to him Carolyn's son would have her destitute before the grass grew over his grave.  He set up the trust in 1993 and opened brokerage accounts in hopes of parlaying the seed money he could muster up into a fund to provide for her and safeguard the money.  Carolyn died in 1999, but he continued to trade in the accounts.

"They subpoenaed every record on me you could imagine, they even got into my dry cleaner's account, but they did not subpoena the brokerage account records.  They did not want the facts, just an indictment.  If they had they would have known that the trust not only had no income for those two years, it lost money both years, but they did not want to know the truth because that would prevent them from accusing me." he said.

Cryer says that it has already been an eye-opening experience for him, "It's been revealing.  I've had agents tell me the law did not apply to them, so I suppose they think they are above the law.  Another, challenged with having failed to follow IRS procedures explained that the procedures are binding on us (the peasants?), but that the IRS does not have to follow its own procedures unless it wants to.  After effecting a legal stay on the CID summonses, a CID investigator called the banks he had summonsed and when they pointed out that they were stayed and not allowed to release records until the court ruled, he demanded they send him the records anyway, law or no law.  After I made full disclosure of all records, saying show me where any of this is taxed, they sent agents out to 'visit' with my clients, and you can imagine what effect that has had on my practice.  But the ride is going to get a lot bumpier from here on.  I'm threatening a lot of rice bowls.  Someone may actually have to
go get a job and work like the rest of us."

Well, now the worm has turned.  Cryer filed a motion to dismiss both counts against him, showing that the law, as it is written, does not make him liable nor tax his revenue from his law practice.  The motion takes another bold step, however, revealing that the income tax, as applied to wages, salaries and fees personally earned, is unconstitutional, citing four separate grounds for the unconstitutionality of the law as to almost every citizen's
revenue personally earned.

According to Cryer, the law, which is carefully drawn to stay inside the Constitution, does not actually tax personal earnings, but the IRS publications, no more law than Time Magazine, say it does and by collecting taxes on personal earnings it has violated several fundamental constitutional restrictions.  He says that nearly a trillion dollars is siphoned, illegally, away from families and households every year, although their wages and salaries, including bonuses, are exempt from taxation under the Constitution.  "I wish there were some way I could have taken this case on a 1/3 contingency," he joked. 

Due to the adverse publicity and clients' fear of being targeted if they get too close to a target, Cryer says his practice has suffered immensely, placing him in a severe financial strain.  "Getting the government off everyone's back and out of their pockets is going to be expensive and, frankly, I don't have the means," Cryer said, "but somehow I am going to finish this.  I am totally convinced that this is why I am here on this Earth, this is why I am a lawyer, and
since it's meant to be, it will be."