Sunday, June 13, 2004

Following up on this week’s posts on the intersection of tax, religion, and politics (here and here), the IRS has sent 3-page letters to all seven national political parties with candidates running for the Presidency (bonus points if you can name all 7 without peeking) promising that it “will take whatever actions are necessary to stem abusive behavior” by churches in the campaign. In the accompanying Information Release 2004-79, IRS Commissioner Everson explained the purpose of the letters:

We are sending the letters because we want to ensure that the political committees and the candidates they support understand the rules. As Congress considers changes to the law in this area, it is important that political organizations keep in mind the requirements of existing law. Today’s guidance does not represent a change in the rules or a change in how the IRS will administer the law in this area.

For further elaboration of the rules restricting political activities of churches, see pages 7-11 of Publication 1818 (Tax Guide for Churches and Religious Organizations).