Bless Us, O Lord, and These, Thy Loopholes

Ever since last year, when the Rev. Kirby Hensley defeated the IRS in court, the tax men have had reason to worry. Thanks to his self-created church, Hensley got back $13,000 when he won a dispute over his 1969 federal income taxes. With a bit of determination and effort --to say nothing of prayer--other middle-income taxpayers can wind up owing little or no tax if they set themselves up, like Hensley, as church pastors.

The initial move is to be ordained and get a church charter--a relatively easy gambit. Hensley's Universal Life Church in Modesto, Calif., will do the honors by mail for a $2 ordination charge and a monthly $2 chartering fee. Then, to qualify for the tax break, aspiring holy men--or women--must take a vow of poverty, conduct almost any kind of religious services, turn over their income to their church, and meet the IRS's paperwork requirements. In return, the church can grant them a modest, tax-free living allowance (IRS might pass $8,000) and provide a "parsonage," including upkeep costs (in all, perhaps another $4,000).

Tax Haven. IRS would unquestionably look the arrangement over carefully and might well take sudden ministers to court, with all the legal fees that implies. But the technical tax haven exists because of the difficulty of distinguishing between one man's honest religion and another's faith in the rewards of tax dodging. If the IRS was hoping that no one would notice the loophole, it was bound to be disappointed. Last week in a National Enquirer (circ. 3,805,112) article Hensley claimed that he has ordained 3.5 million people since 1962. "If Congress takes these tax breaks away from everyone--all the churches --that's fine with me," says the illiterate minister and building contractor. "Until then, I think everyone should be allowed to share the wealth."

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