The federal district court in the eastern district of Kentucky has dismissed the challenges by atheist groups to favorable treatment of churches under the Internal Revenue Code, e.g., exemption from IRS Form 990 and IRS Form 1023 filing, SECA tax treatment of clergy, housing exclusion [107(1)], and special audit procedures. The dismissal is largely based on plaintiff’s lack of standing, so the challenge could resurface in the same or different court.
The housing allowance case currently on appeal to the Seventh Circuit Court of Appeals in Chicago is a separate case. There, a federal district court judge ruled in favor of the atheist group. GuideStone, along with a broad coalition of large and historic church retirement organizations, has filed an amicus brief in that case in support of the housing allowance.