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Church of Scientology to deduct as charitable contributions
“auditing” and “training” payments.6
2. Whether Petitioners’ Tuition Payments Qualify for
Deduction Under Section 170 Pursuant to a Dual Payment
Analysis
a. Introduction
To put our consideration of petitioners’ contentions in
context, we first consider whether petitioners’ payment of
tuition and fees is deductible under a dual payment analysis to
the extent the payments exceed the value of the secular education
received by their children. See United States v. Am. Bar
Endowment, 477 U.S. 105 (1986); Sklar v. Commissioner, supra at
612, 614 n.3, 621. We initially consider that issue without
regard to the enactment of sections 170(f)(8) and 6115 in 1993
and the Commissioner’s settlement with the Church of Scientology
on October 1, 1993. We then consider the effect (if any) of
those developments on our analysis.
b. Background
In 1967, the Commissioner issued Rev. Rul. 67-246, 1967-2
C.B. 104, in response to:
an increasing number of instances * * * in which the
public has been erroneously advised in advertisements
or solicitations by sponsors that the entire amounts
6 Petitioners contend that sec. 7491(a) requires respondent
to bear the burden of proof on all factual issues in the case.
We need not decide the point because our findings and analysis in
this case do not depend on which party bears the burden of proof.
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