Why shouldn’t the Church Audit Procedures Act (CAPA) apply to the Finance Committee investigation?
As the previous chairman of the Senate Finance Committee’s Subcommittee on Oversight of the Internal Revenue Service, Senator Grassley chaired the hearing on this bill on September 30, 1983. His support for this Act remains as strong today as it was at that time. CAPA was enacted in response to concerns about the IRS auditing churches and that these churches were committing significant time and resources to these audits. CAPA was designed specifically to ensure that the IRS thought long and hard before auditing churches and to ensure that examination of religious doctrine was not the basis for an audit. CAPA was not intended to be a shield for churches to put up in the face of legitimate IRS inquiries related to church tax liability, and this is supported by the testimony of Rep. Mickey Edwards and officials from the Treasury Department and the Internal Revenue Service during the hearing. Congressman Edwards, the sponsor of the original House bill, stated: “We don’t mean in this legisl
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- Why shouldn’t the Church Audit Procedures Act (CAPA) apply to the Finance Committee investigation?
