Psychoactive Drug Shouldn’t Block Tax Exemption, Church Argues

An Iowa religious organization argued that it should be granted tax-exempt status despite previously offering a Schedule I drug to its congregation, the organization told the D.C. Circuit.

The Iowaska Church of Healing said it qualifies for tax-exempt status because it operated and is organized exclusively for exempt, lawful purposes, in an Oct. 10 brief to the US Court of Appeals for the D.C. Circuit.

The church said that the US District Court for the District of Columbia erred by siding with the IRS in denying 501(c)(3) tax exempt status to organization because of its previous promotion of ayahuasca, which ...