"Scientology has had a lengthy and highly contentious relationship with the IRS, and yet was granted a sweeping 1993 tax exemption that goes far beyond even what some competing religious organizations receive. The IRS originally revoked Scientology’s tax exemption in 1968, arguing that it was a business rather than a religion; the church refused to pay taxes for the next 26 years. It also launched a campaign against the IRS, filing more than 2,000 lawsuits, requesting hundreds of documents under the Freedom of Information Act, and spending $6 million on full-page newspaper ads attacking the department. They even hired investigators to uncover any dirt on IRS agents that could be used to blackmail them. When the IRS finally reached a settlement in 1993, it declared the agreement secret, in a sharp departure from how other religious organizations had been treated. When details of the agreement were leaked in 1997, it was revealed that the Church of Scientology was required to pay just $12.5 million on the $1 billion tax bill they owed. In exchange they agreed to drop all lawsuits against the IRS and its officials."
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