I know the LDS church has not issued a financial report since 1959 and I know they are tax exempt in the USA. But, are they required to file an annual report with the federal government (as all non-profit and charitable organizations are), and is that discoverable under the Freedom of Information Act?

I assume they must file an annual tax return, even if they are largely tax exempt. No, tax returns are not subject to FOIA.

Good question. Any accountants or lawyers out there? Does the church have to account to anyone financially?

I know the tscc is required to file financial reports in other countries. From those reports it is possible to compile some the data together and make some educated guesses about what they bring in and pay out.

My guess is that the structure of the church in foreign countries is done in a way that isolates the main church's financial secrets. The reporting has to be limited to very few key people who know the whole picture. It would be like tracking transactions through multiple offshore accounts that bounce around like pinballs. They invest in the best legal, financial and computer people they can find and departmentalize everything to a very high level.

I do know that tax-exempt organizations are required to apply for that status--except for religious organizations, which are granted it automatically.

If the Lawrd's 'true' corporation wants to retain its tax-favorable status in the three countries, it has to file yearly reports with government agencies. The filings have partially exposed LD$ Inc.'s financial secrets.

Canada: http://www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html

UK: http://www.charitycommission.gov.uk/

New Zealand: https://www.charities.govt.nz/charities-in-new-zealand/the-charities-register/search-the-register/

If you check the New Zealand tax returns the LDS church is 2 months overdue...?

New Zealand changed their tax laws last year and now require a government audit on ANY charity that claims over a million NZD in revenue.

I hope the mormons are ok with that...

Tom Padley is right when he says above "My guess is that the structure of the church in foreign countries is done in a way that isolates the main church's financial secrets. The reporting has to be limited to very few key people who know the whole picture. It would be like tracking transactions through multiple offshore accounts that bounce around like pinballs. They invest in the best legal, financial and computer people they can find and departmentalize everything to a very high level."

Even in the U.K. where accounts of the charitable companies are on public file, most of the contentious matters are not disclosed. They are accounted for in cost centres that do not comprise part of the U.K. entities but are nevertheless paid and processed by them.

Examples are:-

GA 'living allowances'
MP 'living allowances'
U.S. expatriate compensation (salaries and benefits)
Credit card transactions of GAs and AAs
Forgivable loans
Financial 'irregularities' i.e. if a GA has squandered or even misappropriated funds.
COP financial investments through the U.K.
Anything they process in U.K. but want to keep secret.

Same will apply in Canada and Australia. In the U.S. there is complete secrecy from government departments (e.g. IRS).

The total financial position (though not detailed) is known to less than 10 people, including 2 church employees. the First Presidency and Presiding Bishopric. The other apostles are not even privy to it allegedly.



Edited 1 time(s). Last edit at 09/01/2014 09:53AM by anointedone.

Forgivable loans and credit card payments = tax fraud

The IRS taxes forgiven loans as regular income. This often comes as an unpleasant surprise to the person who had the loan forgiven.

But not for GAs because these are not reported to the IRS, just as MP living allowances are not reported.

This is a deliberate policy of the FP, as confirmed to me during a telephone conversation with the church's former Director of Tax who later became a GA himself.

Anointedone is correct the only way the IRS would know about the forgiven loan is if the individual claims it as income or if the forgiving entity claims it as a deduction (bad debt).

Since they are taught not to, the individuals are not claiming it.

Since the forgiving entity is tscc they certainly don't claim the deduction as they don't need to.

They are a non-profit religious organization (Church) they are not even required to file a Form 990 like non-religious, non-profits are.

Even they are not stupid enough to pay the loans out from one of the for-profit entities.

True, LDS Inc would not need to report the forgiven loan as a bad debt. However, based on my experience with the IRS, they are not stupid, so there must be some way they can require "loans" to be reported and tracked. Otherwise, why wouldn't all clergy get paid in "loans"?

That said, religious tax law is its own little world, and I really don't know what the rules are. I do suspect LDS Inc is quite good at gaming the system. Those who have the gold make the rules, and all that.

It would be lovely if the UK or one of those industrialized nations not as cowered by religions as the US is would go after LDS Inc.



Edited 1 time(s). Last edit at 09/02/2014 02:33PM by Brother Of Jerry.

Brother of Jerry said "It would be lovely if the UK or one of those industrialized nations not as cowered by religions as the US is would go after LDS Inc."

The U.K. will, it just takes time.

Any timetable for completion? When did the investigation start?

Believe it or not the only way the IRS knows of forgiven debts is if one of the two parties reports it. Generally it is the entity forgiving the debt because it is a requirement for them to take it as a deduction on the tax return.

As for the second part, believe it or not most mainstream churches are honest in their finances.

I don't think churches in U.S. are required to report income Or expenses.... the tax code is Very Friendly to churches.

I think it started with the assumption that most church income would be spent on charitable causes (?), and that donors/contributors had 'already paid' taxes on it when they earned it.

However, tscc wants tithing from members Every Time it passes from one hand to another.

go.figure.