Is it illegal, spiritual, or both? What's in question is if the Iowaska Church of Healing can have tax-exempt status while using a drug called ayahuasca. The Des Moines-based church is registered to a home on the city's north side, was founded in 2018 and had at least 20 members at one time, according to court filings. The church sued the IRS over its denial of 501(c)(3) status. Ayahuasca is a plant-based psychedelic drug that has DMT in it, which is a hallucinogenic that is banned under the Federal Controlled Substances Act. Court records claim the church's mission is to "help individuals attain healing of the mind, body and spirit through the sacred Sacrament of Ayahuasca under the guidelines of North and South American indigenous traditions and cultural values. Ayahuasca is consumed in the form of a tea during Plaintiff’s religious ceremonies."In March, a federal judge ruled the IRS correctly denied the application for tax-exempt status, saying the church does not fully operate for exempt purposes and ayahuasca remains illegal under federal law.The church filed an appeal of the ruling just days ago.What's also in question is a 2006 Supreme Court ruling where the court sided with a New Mexico-based church and against the federal government for seizing its ayahuasca. "The church in the Supreme Court case was then, and is still today, recognized as an Internal Revenue Code Section 501(c)(3) organization, and the IRS admitted in the record that my client's activities are "strikingly similar" to those practiced by the church in the Supreme Court case," said Attorney William Boatwright, who represents Iowaska Church of Healing. The church, according to the IRS website is still a public charity. Boatwright also said he and his client relied heavily upon that 2006 opinion and that the court ruling against Iowaska Church of Healing took a "very narrow interpretation" of the Supreme Court ruling.Even though Iowaska Church of Healing is registered to a home on the city's north side, no ceremonies have taken place there, according to Boatwright and court filings. Court records show the church conducted ceremonies using the tea in Florida in 2019 and had required permits to do so. It has since voluntarily suspended them.In a court filing, the IRS states Iowaska is not an organized church or operates exclusively for exempt purposes."Plaintiff's activities are illegal under federal law and violate public policy," the IRS stated in its defense. KCCI Investigates reached out to IRS for comment and did not hear back as of 1:30 p.m. Friday. IRS declined to comment on the original story in January 2022.