Exhibit 419

Church Audit Procedures Act, hearing on S. 1262 before the Subcommittee on Oversight of the Internal Revenue Service, Committee on Finance, S. Hrg. 98-481

Exhibit 419 · Hearing

Church Audit Procedures Act, hearing on S. 1262 before the Subcommittee on Oversight of the Internal Revenue Service, Committee on Finance, S. Hrg. 98-481

The audit resulted in exoneration, but I was struck by how quickly the integrity, character, and moral foundation of small congregations could be undermined by innuendo, rumor, and press coverage during extended I.R.S. examinations.

Hearing on the bill that became §7611. Chairman Grassley said the bill was to "clarify and expedite" church audits and "minimize potential constitutional entanglements"; Treasury and the IRS Commissioner testified; witnesses included the Evangelical Council for Financial Accountability and the National Council of Churches.

Source: U.S. Senate Committee on Finance
Date: 30 September 1983
Quoted from: Opening statement of Sen. Grassley, pp. 1-2
Grade: Primary record
Document: https://www.finance.senate.gov/imo/media/doc/HRG98-481.pdf
Accessed: 2026-11-09
Cited by: Findings citing this exhibit

Cited by

Finding REL-4.2: Primary record The Church Audit Procedures Act of 1984 (26 U.S.C. § 7611) permits the IRS to begin a church tax inquiry only on a written reasonable belief held by an appropriate high-level Treasury official and written notice to the church, and requires written approval of regional counsel before a revocation, deficiency notice or assessment. Congress enacted it after a 1983 Senate hearing at which the chairman cited constitutional entanglement and the harm of extended examinations to small congregations.