The so-called Church of Jesus Christ of Latter-day Saints is committing tax fraud and should have its tax exemption revoked.
There are allegations of the LDS church committing tax fraud in Canada and Australia. I'm adding the United States to the list.
In February 2023, the U.S. Securities and Exchange Commission fined the LDS church for violating federal laws regarding required disclosures:
>The Securities and Exchange Commission today announced charges against Ensign Peak Advisers Inc., a non-profit entity operated by The Church of Jesus Christ of Latter-day Saints to manage the Church’s investments, for failing to file forms that would have disclosed the Church’s equity investments, and for instead filing forms for shell companies that obscured the Church’s portfolio and misstated Ensign Peak’s control over the Church’s investment decisions. The SEC also announced charges against the Church for causing these violations. To settle the charges, Ensign Peak agreed to pay a $4 million penalty and the Church agreed to pay a $1 million penalty.
Why did they do that?
>... the Church was concerned that disclosure of its portfolio, which by 2018 grew to approximately $32 billion, would lead to negative consequences. To obscure the amount of the Church’s portfolio, and with the Church’s knowledge and approval, Ensign Peak created thirteen shell LLCs, ostensibly with locations throughout the U.S., and filed Forms 13F in the names of these LLCs rather than in Ensign Peak’s name. The order finds that Ensign Peak maintained investment discretion over all relevant securities, that it controlled the shell companies, and that it directed nominee “business managers,” most of whom were employed by the Church, to sign the Commission filings. The shell LLCs’ Forms 13F misstated, among other things, that the LLCs had sole investment and voting discretion over the securities. In reality, the SEC’s order finds, Ensign Peak retained control over all investment and voting decisions.
Source: https://www.sec.gov/newsroom/press-releases/2023-35
Alternate source: https://archive.ph/2hYqg
The LDS church settled with the SEC, but the information contained in the report has greater implications that are beyond the SEC's jurisdiction. The IRS is the entity that regulates taxes in the United States; they determine whether a religious institution qualifies for tax exemption.
>The First Amendment prohibits the Government from restricting the free exercise of religion. The courts have held that the First Amendment provides for an absolute freedom of religious belief. However, actions undertaken due to religious beliefs are subject to government regulation when those actions implicate a compelling government interest. Religiously motivated conduct that violates federal, state, or local law may be restricted or prohibited entirely. [emphasis mine]
Source: https://www.irs.gov/pub/irs-tege/atg_religious_orgs.pdf
Alternate source: https://archive.ph/akqPf
The SEC determined the LDS church violated federal laws, this fact, in and of itself, is enough motivation for the IRS to revoke the LDS church's IRC § 501(c)(3) tax exemption.
But there is more.
The Corporation of the President of The Church of Jesus Christ of Latter-day Saints gets its IRC § 501 (c)(3) tax exemption because it is a public charity per IRC § 509(a)(1) / IRC § 170(b)(1)(A)(vi). Ensign Peak Advisors gets its tax exemption because it is a type III supporting organization per IRC § 509(a)(3). Type III supporting organizations cannot act independently of their parent organization -- they must act in accordance with their parent org.
All IRC § 501(c)(3) tax exempt organizations (including religious organizations) have an organizational and operational test they are required to pass. If they fail to pass either of those tests, they will lose their tax exemption.
IRC § 509(a)(3) Supporting Organizations cannot have that much sitting in accounts collecting interest. "Substantially all" of their money must be spent on charitable activities. They are not allowed to save it for a rainy day. Ensign Peak Advisors fail the operational test and deserve to lose its tax exemption.
Because Ensign Peak Advisors fails their operational test, the LDS church fails, too.
If you are so inclined, please write a letter to the IRS and explain The Church of Jesus Christ of Latter-day Saints and their supporting organization, Ensign Peak Advisors, fails the operational test required of all tax-exempt organizations and should pay taxes like every other investment firm.
https://www.irs.gov/charities-non-profits/irs-complaint-process-tax-exempt-organizations
Alternate source: https://archive.ph/2Hr3w