"Married taxpayers were not allowed to deduct as charitable contributions under Code Sec. 170 amounts wired by the taxpayers to a family member for the benefit of the Catholic Church of a foreign country and airfare expenses incurred while rendering services to Catholic churches in the foreign country. The wife, fearing for her life, had disguised contributions to Catholic churches in her native country by wiring amounts to the personal bank account of a family member who later transferred the money to selected Catholic churches in that country. The deduction was denied because the wire transfer was not made to or for the use of an organization created or organized in the United States or under the laws of the United States. Furthermore, while the taxpayers posited that the Catholic Church is a universal organization, there is no basis to find that the churches that received the contributions were created or organized in the United States or under the laws of the United States. Airfare expenses were also denied because the taxpayers did not render services in the foreign country under the direction of, or to or for the use of the taxpayers' local church or local diocese. Anonymous, TC Memo 2010-87, Dec. 58,195(M)"
ignoring the fact that the contribution was not made directly to the foreign church, this ruling sounds as though only donations made to US churches, rather than foreign churches, are deductible charitable contributions. This doesn't sound correct. Or, is the term "created under the laws of the United States" somehow mean foreign churches that meet some test in the US law?
Also, airfare is not deductible because the taxpayer was not rendering services under the direction of his local church (i.e. his U.S. church)? I assume he was rendering services under the direction of the foreign church. Not deductible? I don't get it.