In a recent federal court filing, the IRS announced a significant shift in its interpretation of the Johnson Amendment. This change allows churches to endorse political candidates to their congregations without the risk of losing their tax-exempt status. The IRS stated that communications on matters of faith through usual channels do not violate the Johnson Amendment as properly interpreted. This filing was part of a joint motion to settle a lawsuit with the National Religious Broadcasters and two Texas churches, challenging the amendment’s constitutionality.
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The IRS has proposed a policy change that would allow pastors to endorse political candidates from the pulpit without jeopardizing their church’s tax-exempt status, effectively creating an exemption from the Johnson Amendment. This proposed interpretation stems from a joint court filing with the National Religious Broadcasters Association, aiming to halt enforcement of the amendment against the plaintiffs. The Johnson Amendment currently prohibits tax-exempt organizations, including churches, from endorsing or opposing political candidates, but the IRS now suggests this should not apply to communications during religious services through regular channels. This stance, though largely mirroring existing IRS practices, could significantly increase political expression within churches, as noted by experts in nonprofit law.
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John Q. Hosedrinker