The Kabbalah Center is the place where a form of religious practice is carried out, made famous by celebrities such as Madonna, Ashton Kutcher and now Gwyneth Paltrow. It has now attracted IRS scrutiny much like the Scientologists did for many years. The debate at that time was whether the Church of Scientology is to be considered a church and thereby enjoy tax-exempt status for religious organizations. After years of litigation, the IRS finally ruled that the Church of Scientology was a church in 1993 under section 501(c)3 after the church dropped several lawsuits against the IRS.

Now a similar scenario is being played out with the Los Angeles-based Kabbalah Center. But there is a significant difference. According to the LA Times, the current debate is not whether Kabbalah is a legitimate church that enjoys tax-free status. Rather, it is a criminal investigation into tax evasion.

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