Monday, September 24, 2007
All Saints Episcopal Church (Pasadena, CA) has announced that the IRS has closed its two-year investigation into whether the church's tax-exempt status should be revoked because of an anti-war sermon delivered by its pastor on the Sunday before the 2004 presidential election. The September 10 letter from the IRS concluded without explanation that the sermon in question constituted improper intervention in the 2004 Presidential election but did not take any action to revoke its tax exemption because "this appears to be a one-time occurrence and that you have policies in place to ensure that the Church complies with the prohibition against intervention in campaigns for public office." The church has demanded an investigation of the IRS and an apology.
From today's L.A. Times (Pasadena Church Wants Apology from IRS):
Ellen Aprill, a law professor at Loyola Law School and a tax law specialist, also called the unclear outcome of the case "puzzling" and said it underlined the need for the IRS to explain which activities violate the rules against intervening in a political campaign.
See also the Associated Press. Here are the documents released by All Saints Church:
Prior TaxProf Blog coverage: