IRS says churches can endorse political candidates without losing tax exemptions

Main Idea: The IRS says churches can endorse political candidates without losing their tax-exempt status, in a move tied to a court case over the Johnson Amendment.

Key Points:

• The IRS agreed in a court filing that churches can make candidate endorsements without fear of losing tax-exempt status.
• The case comes from a lawsuit filed by religious groups that challenged the Johnson Amendment, which limits political activity by 501(c)(3) groups.
• The agreement says messages from a church to its congregation during religious services and through normal church channels do not count as banned campaign activity.
• The deal still needs a judge’s approval, and it would affect only the churches in the lawsuit while leaving the broader rule in place for other nonprofits.