“If my clients’ boards of directors can meet that way, is it much different than allowing a church congregation to congregate that way and hold a worship service?”

The U.S. Court of Appeals for the Federal Circuit has ruled that a religious organization that primarily holds Internet and radio worship services does not meet the U.S. Internal Revenue Service’s definition of a church.

A three-judge panel on Monday unanimously upheld a ruling by the U.S. Court of Federal Claims, in a case brought by the Foundation of Human Understanding, founded by Roy Masters in 1963 and “based upon Judeo-Christian beliefs and the doctrine and teachings of its founder.”

The foundation challenged an IRS determination that it did not meet the Internal Revenue Code’s definition of a “church.”

Federal Circuit Judge William Bryson noted that neither Congress nor the IRS has issued much guidance regarding the code’s definition of “church.” He said that court precedents have emphasized the associational test, which defines a church as an organization whose members meet regularly for organized worship, and on the IRS’s 14 criteria for determining what is a church.

Those criteria include that it has a recognized creed and form of worship; a formal code of doctrine and discipline; a membership not associated with any other church or denomination; ordained ministers selected after completing prescribed studies; and holds regular religious services

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