1) Will churches get more leeway to support or oppose political candidates?
We don’t know just yet.
The fate of a proposed statement from the Internal Revenue Service (IRS) regarding churches and their activities involving political candidates will get decided in 2026.
The statement, included with a proposed settlement in a lawsuit against the IRS, suggests churches as tax-exempt entities should enjoy more latitude when it comes to supporting or opposing political candidates—a major departure from tax-exempt regulations in place for decades.
The development caused controversy, and the federal judge in the case is mulling whether to approve the settlement.
If he approves it, the IRS has already prioritized work in 2026 to revise its guidance.
2) The “church autonomy doctrine” expands.
The long-standing “church autonomy doctrine” generally bars civil courts from resolving internal church disputes that involve faith and doctrine.
It may further expand as a defense for churches after two recent federal court decisions.
- In October 2025, the US Court of Appeals for the Fifth Circuit said a lower court properly dismissed a lawsuit filed against a missions organization by its former executive director—and cited the doctrine as the reason.
- Separately, through an early January 2026 decision, the US Court of Appeals for the Ninth Circuit specifically recognized the doctrine as a defense in employment claims. The court said a Washington-based Christian ministry can apply the doctrine to justify employment decisions it makes for nonministerial employees when they are based solely upon religious beliefs.
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3) Changes to the US Postal Service (USPS) postmarking processes.
A few weeks ago USPS changed the way it postmarks first-class mail—significantly affecting postmark-dependent legal- and tax-related matters.
According to USPS, postmarking now will be handled by regional offices, not local ones, which will delay postmark dates.
This is critically important for church leaders.
Postmarks are used to determine whether legal filings and correspondences are made on time.
Additionally, the Internal Revenue Code contains a “mailbox rule” that relies upon postmarks for determining timely filings and compliance.
Later postmark dates can affect anything ranging from court filings, to IRS reporting requirements, to donor checks sent around the end of the calendar year.
Church leaders should consider using certified mail, and possibly alternative mail services, to ensure timely postmarks.
4) More clarity about the One Big Beautiful Bill Act (OBBBA).
The IRS is prioritizing guidance and updates for OBBBA-related items in 2026.
That includes reporting tips and overtime wages, excess compensation paid by tax-exempt entities, and more.
5) Continued shaping of the “ministerial exception.”
The “ministerial exception,” a subset of the church autonomy doctrine, also continues to evolve since the US Supreme Court’s unanimous 2012 decision recognizing it. This doctrine, based upon the First Amendment, allows houses of worship to hire and fire ministers without interference from civil courts. Key decisions last year continued to shape it—setting the stage for more in 2026.
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In 2025, New York’s highest court said the doctrine applied to a religious school teacher fired for a blog post she published, while a lower-level New York court said the ministerial exception did not apply to hostile work environment claims brought by teachers against a Catholic school and its principal.
Elsewhere, a Louisiana federal district court used the doctrine to dismiss a priest’s discrimination and defamation claims.
