Appeals Court Rejects Atheists’ Lawsuit Against Pastors’ Tax-Free Housing Allowance

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A three-judge panel of the U.S. Court of Appeals ruled Thursday against a Wisconsin-based atheist group’s lawsuit against a law that gives clergy an exemption from paying income taxes on their housing allowance.

The appeals court panel unanimously rejected the Freedom From Religion Foundation of Madison’s lawsuit, concluding that FFRF “lacks standing to challenge” the housing allowance law.

The panel declared “The judgment of the district court is vacated and the case remanded with the instructions to dismiss the complaint for want of justification.”

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