Bob Jones University v. United States
Encyclopedia
Bob Jones University v. United States, , was a decision by the United States Supreme Court that held that the Internal Revenue Service
could, without the approval of the United States Congress
, revoke the tax exempt
status of organizations that are contrary to established public policy
.
, because of its interpretation of Biblical principles, denied "admission to applicants engaged in an interracial marriage or known to advocate interracial marriage or dating." The University had received a ruling letter in 1942, confirming its tax exempt status.
The University was notified November 30, 1970 that the IRS
was planning on revoking its tax exempt status as a "religious, charitable . . . or educational" institution. In response, the University filed suit in 1971 in Bob Jones University v. Schultz.
The United States District Court for the District of South Carolina
granted a preliminary injunction
, but the United States Court of Appeals for the Fourth Circuit
reversed in 1973, citing the Anti-Injunction Act
.
The University petitioned for a rehearing in the Appeals Court in Bob Jones University v. Connally. The Appeals Court ruled March 21, 1973, stating that Americans United v. Walters did not conflict with the decision in 1973.
The Supreme Court affirmed the Court of Appeals decision in Bob Jones University v. Simon
(416 US 725). The case was decided May 15, 1974, in an 8-0 decision (Douglas not participating). They stated that there was a lack of proof of "irreparable injury." Justice Powell wrote the decision.
The IRS again notified the University on April 16, 1975 of the proposed revocation. Officially, the IRS revoked the University's tax exempt status on January 19, 1976. The University paid $21 in unemployment taxes
for one employee for tax year 1975 and then filed for a refund in the United States District Court for the District of South Carolina. The Government counterclaimed for unpaid federal unemployment taxes for the taxable years 1971 through 1975, in the amount of $489,675.59, plus interest.
The District Court ruled December 26, 1978 that the IRS had violated the University's First Amendment
rights, and ordered the IRS to refund the University the $21 of taxes that it had paid.
The United States Court of Appeals of the Fourth Circuit ruled that the case be sent back to the District Court
, and joined by William J. Brennan, Byron R. White, Thurgood Marshall
, Harry A. Blackmun, John Paul Stevens
, and Sandra Day O'Connor
. The Court, speaking through Burger, read a "common law" public interest requirement into the statute governing tax-exempt charitable status, and cited Congress' refusal to intervene as proof that they approved of the IRS's construction of the statute. Lewis F. Powell wrote a separate concurring opinion, emphasizing the importance of Congressional approval for administrative policy changes. William H. Rehnquist was the sole dissenter, arguing that the literal terms of the governing statute could not be read to exclude Bob Jones from charitable status.
The ban on interracial dating was lifted in 2000 after Dr. Bob Jones III, following a media uproar prompted by the visit of presidential candidate George W. Bush
, announced its nullification on Larry King Live
.
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
could, without the approval of the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
, revoke the tax exempt
Tax exemption
Various tax systems grant a tax exemption to certain organizations, persons, income, property or other items taxable under the system. Tax exemption may also refer to a personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income under some...
status of organizations that are contrary to established public policy
Public policy
Public policy as government action is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. In general, the foundation is the pertinent national and...
.
Background
Bob Jones UniversityBob Jones University
Bob Jones University is a private, for-profit, non-denominational Protestant university in Greenville, South Carolina.The university was founded in 1927 by Bob Jones, Sr. , an evangelist and contemporary of Billy Sunday...
, because of its interpretation of Biblical principles, denied "admission to applicants engaged in an interracial marriage or known to advocate interracial marriage or dating." The University had received a ruling letter in 1942, confirming its tax exempt status.
The University was notified November 30, 1970 that the IRS
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
was planning on revoking its tax exempt status as a "religious, charitable . . . or educational" institution. In response, the University filed suit in 1971 in Bob Jones University v. Schultz.
The United States District Court for the District of South Carolina
United States District Court for the District of South Carolina
The United States District Court for the District of South Carolina is the federal district court whose jurisdiction is the state of South Carolina...
granted a preliminary injunction
Preliminary injunction
A preliminary injunction, in equity, is an injunction entered by a court prior to a final determination of the merits of a legal case, in order to restrain a party from going forward with a course of conduct or compelling a party to continue with a course of conduct until the case has been decided...
, but the United States Court of Appeals for the Fourth Circuit
United States Court of Appeals for the Fourth Circuit
The United States Court of Appeals for the Fourth Circuit is a federal court located in Richmond, Virginia, with appellate jurisdiction over the district courts in the following districts:*District of Maryland*Eastern District of North Carolina...
reversed in 1973, citing the Anti-Injunction Act
Anti-Injunction Act
The Anti-Injunction Act, , is a United States federal statute that prohibits any federal court from issuing an injunction against proceedings in any state court, except within three specifically defined exceptions...
.
The University petitioned for a rehearing in the Appeals Court in Bob Jones University v. Connally. The Appeals Court ruled March 21, 1973, stating that Americans United v. Walters did not conflict with the decision in 1973.
The Supreme Court affirmed the Court of Appeals decision in Bob Jones University v. Simon
Bob Jones University v. Simon
Bob Jones University v. Simon, 416 U.S. 725 , was a case decided by the Supreme Court of the United States....
(416 US 725). The case was decided May 15, 1974, in an 8-0 decision (Douglas not participating). They stated that there was a lack of proof of "irreparable injury." Justice Powell wrote the decision.
The IRS again notified the University on April 16, 1975 of the proposed revocation. Officially, the IRS revoked the University's tax exempt status on January 19, 1976. The University paid $21 in unemployment taxes
Unemployment benefit
Unemployment benefits are payments made by the state or other authorized bodies to unemployed people. Benefits may be based on a compulsory para-governmental insurance system...
for one employee for tax year 1975 and then filed for a refund in the United States District Court for the District of South Carolina. The Government counterclaimed for unpaid federal unemployment taxes for the taxable years 1971 through 1975, in the amount of $489,675.59, plus interest.
The District Court ruled December 26, 1978 that the IRS had violated the University's First Amendment
First Amendment to the United States Constitution
The First Amendment to the United States Constitution is part of the Bill of Rights. The amendment prohibits the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering...
rights, and ordered the IRS to refund the University the $21 of taxes that it had paid.
The United States Court of Appeals of the Fourth Circuit ruled that the case be sent back to the District Court
The Supreme Court decision
Bob Jones University v. United States was decided May 24, 1983 in an 8-1 decision with majority opinion written by Warren E. BurgerWarren E. Burger
Warren Earl Burger was the 15th Chief Justice of the United States from 1969 to 1986. Although Burger had conservative leanings, the U.S...
, and joined by William J. Brennan, Byron R. White, Thurgood Marshall
Thurgood Marshall
Thurgood Marshall was an Associate Justice of the United States Supreme Court, serving from October 1967 until October 1991...
, Harry A. Blackmun, John Paul Stevens
John Paul Stevens
John Paul Stevens served as an Associate Justice of the Supreme Court of the United States from December 19, 1975 until his retirement on June 29, 2010. At the time of his retirement, he was the oldest member of the Court and the third-longest serving justice in the Court's history...
, and Sandra Day O'Connor
Sandra Day O'Connor
Sandra Day O'Connor is an American jurist who was the first female member of the Supreme Court of the United States. She served as an Associate Justice from 1981 until her retirement from the Court in 2006. O'Connor was appointed by President Ronald Reagan in 1981...
. The Court, speaking through Burger, read a "common law" public interest requirement into the statute governing tax-exempt charitable status, and cited Congress' refusal to intervene as proof that they approved of the IRS's construction of the statute. Lewis F. Powell wrote a separate concurring opinion, emphasizing the importance of Congressional approval for administrative policy changes. William H. Rehnquist was the sole dissenter, arguing that the literal terms of the governing statute could not be read to exclude Bob Jones from charitable status.
Aftermath
The case has been cited in many decisions that followed as well as by commentators, due to the significance of the precedent established in this case.The ban on interracial dating was lifted in 2000 after Dr. Bob Jones III, following a media uproar prompted by the visit of presidential candidate George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
, announced its nullification on Larry King Live
Larry King Live
Larry King Live is an American talk show hosted by Larry King on CNN from 1985 to 2010. It was CNN's most watched and longest-running program, with over one million viewers nightly....
.