Pastors Defy Tax Code

We talked in class on Friday about the different ways independent groups get involved in campaigns. Non-profit, tax exempt groups are allowed to get involved with campaigns, but only to the extent that they do not endorse candidates. On the other hand, they can get involved with nonpartisan activity, such as holding candidate forums, educating voters, and registering voters. These groups fall under section 501(c)(3) of the IRS tax code, and as such, they receive tax exempt status. This means that these groups do not have to pay taxes on their income. The most obvious example of a 501(c)(3) organization is a church. Indeed, according to a recent ABC News article located here, a number of pastors plan to get involved in partisan politics this year. In fact, these churches will be sending copies of their partisan sermons to the IRS in the hopes that the IRS will investigate them.

Why do they want to be investigated? The churches see an investigation as an opportunity to file a federal lawsuit against the IRS which prevents them from engaging in partisan activity. They feel that the courts, rather than having the law overturned by Congress, is a venue where they are likely to be more successful. The opposite view is that churches are free to give up their tax exempt status if they wish to engage in partisan activity. Regardless of what position you take on the issue, this shows that churches, like business groups, labor unions, candidates, and parties, are all planning to get involved with this year's election.