Amid IRS audit and legal battle, Rick Kloos will open a second God's Storehouse in Topeka

In the midst of a church audit by the Internal Revenue Service, God's Storehouse is expanding to East Topeka.

Rick Kloos and other leaders of God's Storehouse announced Thursday that a new location will be coming at 1707 S.E. 29th Street. The goal is to be open by March 1.

The expansion comes as God's Storehouse remains locked in a federal court battle with the IRS over an investigation into the church and its tax obligations. Oral arguments in the U.S. 10th Circuit Court of Appeals are scheduled for Jan. 16.

Rick Kloos said opening a second God's Storehouse now sends a message of hope.

"We're just doing what the church is supposed to be doing, and that's ministering to the least of these," he said. "Oftentimes, the government and state agencies aren't able to help in all these specific humanitarian needs, but we feel privileged in knowing that for 15 years the community has been behind us."

Rick Kloos is a state senator and is running for reelection, while his wife, Pennie Boyer-Kloos, has launched a run for the House.

The Klooses founded God's Storehouse Topeka Church in 2009, which operates a thrift store and coffee shop.

"If you have to shop secondhand, you shouldn't have to feel second class," Boyer-Kloos said. "That's why we like to make everything that we do and every place that we go an experience for the people, and a great experience."

The IRS is probing God's Storehouse status as a church, or whether it is primarily a thrift store; whether taxes were paid from its coffee shop, Judee's; whether the church engaged in prohibited political campaign activity; and whether it failed to withhold employment taxes on wages paid to Kloos and Boyer-Kloos, despite withholding taxes from other employees.

"A church has the right according to IRS guidelines to operate a thrift store or a day care and remain exempt," Rick Kloos said. "With our coffee shop, everything when it was set up under the umbrella of the church, it was set up at cost."

"We're obviously in an argument with the IRS," said Michael Kloos, general manager of God's Storehouse and one of Rick Kloos' sons. "They don't like the size of our church versus the size of our ministry, where we serve every single day. But there is no law, no constitution that says the ministry that you do Monday through Saturday should look any less than your Sunday ministry.

"So we're a church that is effective Monday through Saturday, not just on Sundays, and unfortunately that upsets a few people. We're going to continue to be who we are, regardless of the naysayers."

More: Sen. Rick Kloos sees God's Storehouse's fight with IRS as standing up for all churches

How a November snowstorm led to new God's Storehouse space

The property at Shawnee Plaza is owned by Fairlawn Plaza LLC, which is owned by local businessman Randy Austin.

He said "a perfect storm brought us together," referring to the Nov. 25 snowstorm.

During the storm, the current God's Storehouse location at 2111 S.W. Chelsea Drive had a 5,000-square-foot tent over furniture stored outside.

"The 7 inches of snow collapsed it, and so we were in a pinch of we don't know what we're going to do next," Michael Kloos said. "Randy (Austin) stepped in and said, 'Hey, I have this option for you, and would you guys look at it and consider it.' Then he took it upon himself to make us a deal that we couldn't say no to."

Austin said God's Storehouse will be good for East Topeka.

"I don't know much about it religion," he said. "But I do know about retail, and they're really, really good at it."

Matt Pivarnik, of the Greater Topeka Partnership, praised God's Storehouse as being solution-oriented.

"I just want to tell you how much I appreciate your ministry, how much I appreciate your heart," he said.

"I'm so excited, I'm almost at a loss for words," said newly elected Topeka City Council member David Banks.

"Our district is going to be so pleased to have an established business to come to guide us," Banks said.

Rick Kloos said the church must have a healthy balance between service and business.

"If it's all about service and you're not business oriented, guess what's going to happen, you're going to run out of money," he said. "But if it's all about business and you forget those who you serve, then you get in trouble as well."

Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.

This article originally appeared on Topeka Capital-Journal: Amid IRS audit, Rick Kloos announces a God's Storehouse in East Topeka