Future Challenges
The pending appeal by the plaintiffs will require time.
Future challenges to the Johnson Amendment also can be brought if other facts and circumstances exist, the judge noted.
If a church engaged in political activities and was taxed by the IRS, a refund lawsuit could be filed, the judge said.
Additionally, an exception to the DJA allows declaratory lawsuits in one of three courts based in Washington, D.C. An IRS revocation of a church’s tax-exempt status, for instance, would create “a specific set of facts” for such a lawsuit.
What This Means for Churches and Pastors
For now, the ruling means the same guidance for churches and ministers regarding political activities remains in place.
Churches and ministers enjoy First Amendment protections regarding publicly supporting or opposing political candidates for office and advocating on legislative matters and ballot measures.
However, those activities may draw IRS attention, thus jeopardizing a church’s tax-exempt status.
With respect to political candidates, the prohibition is absolute, although the IRS has not widely enforced it.
With respect to lobbying and advocacy, a limited amount of activity is permitted.
Separately, but relatedly, ministers still remain protected by the First Amendment to speak and preach on matters of social, biblical, and moral importance without fear of government intervention.
Chapter 12 of Church Law & Tax’s online Church & Clergy Tax Guide provides more details and specific guidance regarding churches and political activities.
