In a notable shift, the IRS has indicated in a federal court filing that churches may endorse political candidates to their congregations without endangering their tax-exempt status. This announcement challenges the traditional application of the Johnson Amendment, a provision of the U.S. tax code that has long prohibited tax-exempt organizations, including churches, from political endorsements. Former President Donald Trump has been an outspoken critic of the Johnson Amendment, arguing it restricts free speech and religious liberty. The IRS's updated position signals a reevaluation of how faith-based institutions can engage with political issues within their religious context.

The filing, submitted jointly with the National Religious Broadcasters (NRB) and two Texas churches, clarified that faith-based communication from the pulpit or during worship services—even when discussing political matters—does not violate the Johnson Amendment. According to the IRS, such speech does not amount to political “intervention” when presented as part of a church’s ordinary religious messaging. The case, currently before a federal court in Texas, stems from a lawsuit asserting that the Johnson Amendment infringes on First Amendment rights. While a judge has not yet ruled on the consent judgment, a favorable outcome for the churches could establish a legal precedent allowing greater freedom for religious institutions to express political views.

Stay Awake. Keep Watch.

SOURCE: CNBC