In an April 2009 decision, the Ninth Circuit Court ruled that taxpayer donations to faith-based scholarship organizations raised serious questions as to whether private school tax credits are constitutional. The ruling by the Ninth Circuit Court refocuses the nation's spotlight on how Arizona's scholarship organizations are using taxpayer money to fund private school scholarships. The Ninth Circuit Court ruling revisited the continuing debate over the separation of church and slate. The courts pronouncement states that Arizona's private school scholarship tax credit program, as applied, violates the Establishment Clause of the US Constitution. As tax credit programs gain popularity, CPAs throughout the country can also play a critical role in advising policymakers. State legislators need to be aware of both the tax implications and the constitutionality of various school choice funding options when designing programs. Additionally, CPAs can and should encourage nonprofit entities to develop good internal controls. The publics needs CPAs to be in the forefront of the school choice movement.
Tax Credits for Private School Scholarships Lawrence C Mohrweis The CPA Journal; Feb 2010; 80, 2; Docstoc pg. 50 Reproduced with permi
Pages to are hidden for
"Tax Credits for Private School Scholarships"Please download to view full document