Taxpayers and the Internal Revenue Service (IRS) frequently disagree over the meaning of tax statutes and regulations. In God’s Storehouse Topeka Church v. United States, 2024 U.S. App. LEXIS 8478, 98 F.4th 990 (10th Cir. 2024), the U.S. Court of Appeals for the Tenth Circuit relied on the “plain meaning” approach to statutory interpretation. The court held that special audit procedures in I.R.C. Section 7611 designed to protect churches’ First Amendment rights do not constrain the IRS’s power to obtain records via third-party summonses in investigating churches. Because it found the statute’s text unambiguous, the Court declined to consider the statute’s purpose and legislative history in ruling for the IRS.
Case Background
Founded by Richard Kloos and his wife in 2009, God’s Storehouse Topeka Church (God’s Storehouse or church), a self-declared church, operates a thrift store with a small space inside that serves as a coffee shop. In 2020, during a successful run for state senate, Kloos’ campaign purchased yard signs that highlighted his association with the church.
