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Apr 7, 2008 11:39 pm US/Central
Copeland Ministries Respond To Investigation
DALLAS (CBS 11 / TXA 21) ―
How many of us would walk into the Internal Revenue Service to have our own finances investigated? That's exactly what representatives at Kenneth Copeland Ministries did.
"By doing so, the church's constitutional rights are protected," said John Copeland.
The international church, based near Eagle Mountain Lake, petitioned the IRS. in Dallas to audit its finances in response to an investigation by Senator Chuck Grassley.
"It has been our contention that there is a process already in place to provide this kind of information," said Copeland. "This process is to give it to the Internal Revenue Service."
As chairman of the Senate Finance Committee, Grassley called for six of the largest Christian ministries in the U.S. to turn over financial records. The senator from Iowa wants to know if several high-profile preachers are using church money and donations to bankroll lavish lifestyles.
In a statement on its Web site, Kenneth Copeland Ministries says it's turning to the I.R.S. because it knows the I.R.S must keep the church's finances confidential. The move would then force Senator Grassley to obtain Copeland's records from the I.R.S. once the audit is complete.
But Dallas tax attorney Charles Blau says that strategy is likely to fail if a senate committee subpoenas Copeland Ministries.
"The church is saying this is a first amendment religious issue and a senate committee does not have a right to this financial information," said Blau. "I think they're probably going to lose that argument. There are limits on non-reporting of financial information."
In most cases, religious organizations do not have to report finances to the federal government. But when there is a question of abuse, the rules may not apply.
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