An atheist organization paid a taxable housing allowance to two of its officers. The group sued IRS, claiming the exclusion that clergy receive for housing allowances
is akin to support of religion by the government, since the tax break is only for members of the clergy.
A district court had ruled that the exclusion was unconstitutional, but the appeals court tossed the case, saying that the group didn’t suffer any harm because its officers didn’t claim the exclusion (Freedom From Religion Fdn., 7th Cir.).