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The consequent of that argument is that if the LDS church violated the rules under which it enjoys tax exempt status, then it ought to lose that status and be penalized. The argument in favor of this position is made here: http://jesshartley.livejournal.com/376470.html and in the links from that post.
I'm not at all convinced by the claim that the church "clearly" ought to lose its status, but there does seem to be reasonable grounds for a full investigation.