The IRS has signaled that churches can endorse political candidates without jeopardizing their tax-exempt status, challenging a long-standing interpretation of the U.S. tax code’s Johnson Amendment.
The Internal Revenue Service announced in a federal court filing that churches are entitled to endorse political candidates during services without forfeiting their tax-exempt status. This decision marks a significant shift from a 70-year-old interpretation of the U.S. tax code, specifically the Johnson Amendment, which historically prohibited certain non-profit organizations, including churches, from engaging in such endorsements.
The IRS’s filing stated that communications from a house of worship to its congregation during religious services, when conducted through customary channels, do not violate the Johnson Amendment. The agency clarified that when a church discusses electoral politics from a religious perspective during services, it does not amount to participation or intervention in a political campaign, as understood within the usual meaning of these terms.
This move could lead to significant changes in how churches and religious organizations interact with political campaigns and candidates. The filing was part of a legal settlement effort in a U.S. District Court for the Eastern District of Texas, involving the IRS, the National Religious Broadcasters group, Sand Springs Church in Athens, Texas, and First Baptist Church Waksom in Waksom, Texas. The parties involved in the lawsuit argued that the Johnson Amendment infringed upon their First Amendment rights to free speech and religious expression.
President Donald Trump has previously advocated for the repeal of the Johnson Amendment, aligning with arguments presented by these religious groups. The IRS’s recent position indicates a considerable deviation from its past interpretations of the tax code concerning church involvement in political endorsements.
The lawsuit resulted in a joint motion to settle through a consent judgment, which, if approved, would prevent the IRS from enforcing the Johnson Amendment against the suing churches. However, at the time of the filing, the district court had not yet issued a ruling on the motion.
According to CNCB, these developments could influence similar cases and may lead to broader implications for the intersection of religious freedom and political expression within U.S. tax law.