SPECIAL RULES LIMITING IRS AUTHORITY TO AUDIT A CHURCH
Congress has imposed special limitations on how and when the IRS may conduct civil tax inquiries and examinations of churches. The IRS may only initiate a church tax inquiry if it reasonably believes, based on a written statement of the facts and circumstances, that the organization: (a) may not qualify for the exemption, or (b) may not be paying tax on an unrelated business or other taxable activity.
