The Internal Revenue Service (IRS) has taken a definitive step away from a longstanding interpretation of the Johnson Amendment, signaling a pivotal change in the relationship between religion and politics in the United States. In a consent judgment filed in federal court, the IRS acknowledged that houses of worship can endorse political candidates to their congregations without risking their tax-exempt status. This development stems from a legal challenge initiated by Sand Springs Church, First Baptist Church Waskom, and national Christian organizations like Intercessors for America and National Religious Broadcasters.
The plaintiffs contended that the Johnson Amendment, which has historically barred non-profit organizations from engaging in explicit political activity, violates their First and Fifth Amendment rights, as well as the Religious Freedom Restoration Act. The IRS, in a surprising turn, has now stated that religious leaders speaking to their congregations about candidates or elections through regular channels such as sermons or religious services, from a faith-based perspective, does not equate to political intervention under the law. This represents the first time the IRS has formally adopted this stance, despite previously avoiding enforcement actions against churches for similar political expressions.
The consent judgment further emphasized that applying the Johnson Amendment to religious speech during services would be at odds with the First Amendment’s Establishment Clause. The IRS articulated that interpreting the amendment to encompass such communications would unfairly favor religions that abstain from discussing electoral politics over those that do.
The motion, filed jointly by the IRS and the plaintiffs, likened such endorsements to "a family discussion concerning candidates," suggesting that these private, faith-based communications are not intended as public campaign interventions. Legal scholars, such as Hitoshi Mayer from the University of Notre Dame, have labeled the move as significant, essentially giving churches a carte blanche to support political candidates from the pulpit without the fear of losing their tax-exempt status.
However, the change has not been met without opposition. The National Council of Nonprofits has voiced concern that the ruling could be manipulated by political campaigns, potentially altering the landscape of campaign finance. Diante Yentel, the organization’s president, cautioned that this could lead to political operatives channeling tax-deductible donations through churches.
The plaintiffs are now urging the court to prevent future administrations from reversing this interpretation, aiming to cement the IRS's current position into legal precedent. The decision effectively ends a 70-year understanding of the tax code and the Johnson Amendment that restricted non-profit groups, including churches, from endorsing political candidates.
