The Ninth Circuit Court of Appeals has reversed a District Court decision that members of a Hutterite religious community are not employees but has remanded the case to the District Court to see whether the community is permitted to deduct the costs for meals and healthcare for the employees as ordinary and necessary expenses of the business. As an apostolic corporation, the Stahl Hutterian Brethren (“SHB”) is exempt from income tax on its farming operations under Section 501(d) of the Tax Code so long as the members pay their proportionate share of the taxes that would otherwise be due. The individual liability of members is reduced by ordinary and necessary business deductions allowed to...