Pastors challenge ruling

Appeal judge’s decision against housing allowance

Chicago | A group of pastors and religious leaders have filed an appeal to protect the minister’s housing allowance, which was declared unconstitutional last year.

Codified as part of a 1954 law, the housing allowance allows “ministers of the Gospel” to exclude for federal income tax purposes a portion or all of their gross income as a housing allowance. Judge Barbara Crabb of the Western District of Wisconsin ruled last year that the housing allowance violates the Constitution’s Establishment Clause—which bans government-established religion.

In December, Crabb entered a final order declaring the housing allowance unconstitutional. That order, however, has been stayed for 180 days after all appeals are exhausted, meaning it currently has no impact.

were brought by the Wisconsin-based Freedom From Religion Foundation, who argue the IRS has violated the Constitution by refusing to permit its leaders to claim the ministerial housing allowance.