IRS allows churches to endorse political candidates without losing tax benefits

The Internal Revenue Service (IRS) has announced that places of worship will now be allowed to endorse political candidates without jeopardizing their tax-exempt status. This marks a significant shift in the interpretation of the Johnson Amendment—a long-standing provision that bars tax-exempt organizations, including churches, from participating in partisan political activities.

According to a court filing dated July 7, the IRS clarified that religious leaders may express support for political candidates during regular religious services, as long as these statements are made as part of direct communication with their congregations and are not part of a coordinated or financially supported political campaign.

In addition, the IRS compared candidate endorsements by religious institutions to a “family discussion.” The agency emphasized that treating internal communications between a place of worship and its congregation as a violation of the Johnson Amendment would create a conflict with established First Amendment protections.

"For these reasons, the Johnson Amendment does not reach speech by a house of worship to its congregation, in connection with religious services through its customary channels of communication on matters of faith, concerning electoral politics viewed through the lens of religious faith," said the legal document filed by the IRS.

The National Religious Broadcasters and several churches filed a lawsuit against the IRS, arguing that the regulation violates their constitutional rights under the First Amendment—specifically, the freedoms of speech and the free exercise of religion.