Scientologists and IRS settled for $12.5 million - 1997-12-30
According to a copy of the settlement, details of which have never before been made public, the church also agreed to set up a special "church tax-compliance committee," composed of high-level church officials, to monitor its adherence to the pact and to laws governing nonprofit organizations.
Further, the church agreed to drop thousands of lawsuits filed against the IRS in courts around the country and to stop assisting people or groups suing the agency based upon claims prior to Oct. 1, 1993, the settlement date. Any Scientology member or organization that sues based on those claims could face IRS penalties.
The 1993 agreement was nearly unprecedented and brought an end to an extraordinary battle. Starting in 1967, the IRS had argued that the main Scientology church should lose its tax-exempt status because it was a for-profit business that enriched church officials. The church's response was an all-out attack: filing suits against the IRS, feeding negative stories about the agency to news organizations, and supporting IRS whistle-blowers.