DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

June 13 2000

Mrs. Virginia McClaughry
3407 W. SUmmerfield Rd.
Post Falls, Idaho 83854

Dear Mrs. McClaughry

Thank you for the information you provided in your communication dated May 9, 2000, regarding the Church of Scientology Flag Service Organization. The information submitted indicates concern that the tax-exempt church is not acting in compliance with the law.

The office of the Internal Revenue Servis (IRS) with jurisdiction over the Church of Scientology Flag Service Organization is the Exempt Organization Area Manager, Gulf Coast. Accordingly, we have forwarded the information you have provided to us to that office for appropriate action.

The Internal Revenue Code includes taxpayer privacy provisions, which were enacted by Congress to protect the privacy of tax returns and tax return information of all taxpayers. Accordingly, we cannot disclose what action, if any, the IRS has taken or may take with respect to the information you have provided to us, or with respect to the Church of Scientology Flag Service Organization.

However, we can state that the IRS maintains an ongoing examination program to ensure that tax-exempt organizations continue to meet the legal requirements for tax exemption, and that they otherwise comply with applicable tax laws. When an examination reveals that an organization is not complying with the tax laws, the IRS takes appropriate action.

If, at a later date, you have additional information that you believe is relevant to this matter, or that you wish to bring to the attention of the IRS, please feel free to send it directly to the following address:

EO Area Manager Gulf Coast
Internal Revenue Service
401 Peachtree Street
Atlanta, GA 30308

We appreciate your concern in bringing this matter to our attention.

Sincerely,

(sig) V. G. Richardson for Joseph Urban
Acting Manager, Exempt Organizations
Projects Branch 1