Tax ruling on contributions not retroactive

The Internal Revenue Service will not make retroactive the recent Supreme Court ruling that prohibits deductions for money given directly to LDS missionaries.

In Davis vs. United States, the nation's highest court ruled May 21 against an LDS couple from Idaho, denying them tax deductions for direct support of the missionary service of their two sons. (See Church News, May 26.)With that ruling, according to Jan Hadley, public affairs officer for the IRS in Salt Lake City, the question arose concerning what to do about people who had received the deduction in the past.

She said the IRS has decided those deductions would stay intact. The decision will be enforced for direct contributions made on or after May 21, 1990.

"We're confident the IRS decision is welcomed by those it affects," said Don LeFevre, director of media relations for the Church. "Meanwhile, members of the Church will continue to be encouraged to make missionary contributions through procedures established several years ago."

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