TYLER, Texas (Michigan News Source) – In a landmark moment for religious freedom and free speech, a coalition of churches and faith-based broadcasters is on the verge of securing a major settlement with the Internal Revenue Service today.
The Joint Motion for Entry of Consent Judgment, filed Monday, July 7, in the U.S. District Court for the Eastern District of Texas, comes nearly a year after the plaintiffs sued the IRS over its enforcement of the Johnson Amendment. The filing is a legally binding agreement that resolves the case without going to trial, pending the judge’s approval.
Plaintiffs say IRS singled out churches while ignoring political advocacy by left-leaning nonprofits.
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The plaintiffs – National Religious Broadcasters, Sand Springs Church, First Baptist Church Waskom, and Intercessors for America – were represented by a legal team that included Michigan attorney David A. Kallman of the Kallman Legal Group, PLLC.
They argued that the IRS unfairly singled out churches for political speech while overlooking similar activities by progressive nonprofits.
Carving out a church exemption.
At issue was the Johnson Amendment, a provision of the tax code barring 501(c)(3) organizations from engaging in political campaigning. Under the consent judgment, the IRS now formally agrees that when a house of worship speaks to its own congregation about political matters through religious services and customary channels of communication, it does not constitute a violation of the Johnson Amendment.
The court filing explains, “Bona fide communications internal to a house of worship, between the house of worship and its congregation, in connection with religious services…do not run afoul of the Johnson Amendment as properly interpreted.”
The IRS likened such discourse to a “family discussion concerning candidates,” which falls outside the scope of campaign intervention.
Double standard called out.
In their original complaint, the plaintiffs highlighted what they called a discriminatory pattern in IRS enforcement. While left-leaning nonprofits like Mother Jones, Yes! Magazine, and even the nonprofit- run Philadelphia Inquirer freely published endorsements and campaign content, conservative churches and religious groups were threatened with penalties for engaging in far less overt commentary.
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One example cited was Cornerstone Chapel, whose pastor spoke about voting in alignment with biblical values – a sermon that resulted in an IRS tax penalty, even though he did not explicitly endorse a candidate.
What comes next.
While this consent judgment only applies directly to the plaintiffs, legal experts say it may set a powerful precedent. “It basically tells churches of all denominations and sects that you’re free to support candidates from the pulpit,” said Notre Dame law professor Lloyd Mayer in a separate interview with The New York Times. He added, “It also says to all candidates and parties, ‘Hey, time to recruit some churches.’”
Additionally, this settlement could mean changes coming to non-religious nonprofits as well. In a recent interview discussing the implications of the legal challenge to the Johnson Amendment, attorney David Kallman stated, “If churches and pastors from the pulpit have the right as a 501(c)(3) to have that free speech, why don’t other 501(c)(3) organizations have the same rights? I think the obvious answer is they do.”
