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Accountancy Slice
North America
The IRS has announced that pastors endorsing political candidates from the pulpit will not risk losing their tax-exempt status. This decision seeks to create an exception for religious organizations from the Johnson Amendment, a 1954 rule that prohibits tax-exempt entities from engaging in political endorsements. In a joint court filing, the IRS and the National Religious Broadcasters Association requested a federal court in Texas to halt the enforcement of the Johnson Amendment against them, arguing it infringes on their First Amendment rights. The plaintiffs that sued the IRS had previously asked a federal court in Texas to create an even broader exemption, to rule that all nonprofits, religious and secular, were free to endorse candidates to their members. The IRS has agreed to a narrower carveout, and said that if a house of worship endorsed a candidate to its congregants, it would be viewed not as campaigning but as a private matter, like “a family discussion concerning candidates.” Earlier this year, Republican lawmakers also introduced legislation aimed at removing the amendment.
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