From Newsgroup: alt.society.civil-liberty

Most churches in America have organized as "incorporated 501c3
tax-exempt religious organizations." This is a fairly recent trend
that has only been going on for about fifty years. Churches were only
added to section 501c3 of the tax code in 1954 (we can thank Sen.
Lyndon B. Johnson for that).

Although Johnson proffered this as a "favor" to churches, the favor
also came with strings attached (more like shackles). One need not
look far to see the devastating effects 501c3 acceptance has had to
the church, and the consequent restrictions placed upon any 501c3
church. 501c3 churches are prohibited from addressing, in any tangible
way, the vital issues of the day. The 501c3 has had a "chilling
effect" upon the free speech rights of the church.

Did the church ever need to seek permission from the government to be
exempt from taxes? Were churches prior to 1954 taxable? No, churches
have never been taxable. To be taxable one would first need to be
under the jurisdiction and therefore under the taxing authority of the government. The First Amendment clearly places the church outside the jurisdiction of the civil government: "Congress shall make NO LAW
respecting an establishment of religion, nor prohibiting the free
exercise thereof."

Religion cannot be free if you have to pay the government, through
taxation, to exercise it. Since churches aren't taxable in the first
place, why do so many of them go to the IRS and seek permission to be tax-exempt? It's illogical.

Most churches also incorporate. At law a corporation is "a creature of
the State," and "the State is sovereign over all corporations." Not
only are there immense legal ramifications, there are also huge
theological ramifications to any church incorporating. By definition
an incorporated church is a State-Church. Is that what Christ came to
earth to establish?

Everyone talks about a "separation of church and state." Yet most
churches today aren't acting like they're separate from the state at
all. They act like they're subordinate to the state. They act like
they need the permission of the state to function.

Surely this cannot be deliberate, but must be based upon gross
ignorance of the law. It also seems to be based upon, "Everyone else
is incorporating and getting their 501c3. Guess we'd better do it
too." Just because everyone else is doing it, does that make it right?

What is the tax law regarding churches? According to the IRS,
"churches are automatically tax-exempt and tax-deductible" without
ever having to apply for 501c3 status.

Not only is 501c3 status unnecessary for any church, when a church
becomes a 501c3 they place themselves under the regulatory control of
the IRS, and all the potential threat and intimidation that comes
along with it. Why would any thinking pastor want that, when it's not
at all necessary? It just doesn't make sense.

Thankfully, there's a remedy. Churches can stop "rendering unto
Caesar" those things which belong exclusively to Jesus Christ. For
some insight on the issue you might want to check out:
http://501c3.info

I've found the information there to be very helpful.
--- Synchronet 3.18b-Win32 NewsLink 1.113