Church Taxes

“He also wrote that there was a simple solution for churches that wanted to avoid being penalized for endorsing candidates: ‘Put differently, if the plaintiffs here gave up their 501(c)(3) tax-exempt status, none of the harms they allege could occur.’” - RNS

“While the guidance applies broadly to all tax-exempt groups, churches and conventions or associations of churches receive some meaningful accommodations based on their religious natures.” - C.Leaders

“The current consent decree limits a non-profit’s permissible political activity to ‘(b)ona fide communications internal to a house of worship, between the house of worship and its congregation in connection with religious services through its usual channels of communication on matters of faith.’” - RNS

“Before a pastor or church decides to declare once and for all their red or blue colors, however, it might be wise to consider the impact it might have on their witness.” - Baptist Press

“Although it was rarely enforced, bad faith actors have used the Johnson Amendment as a tool to intimidate churches into remaining silent on a whole host of biblically informed electoral issues—not just specific candidates” - Baptist Press

“While few public examples exist of the actual enforcement of these rules over the years by the Internal Revenue Service (IRS), churches and church leaders still should understand the prohibitions and limitations, including any potential tax consequences triggered by them.” - C.Leaders

Related:

“By May 15, it may need to file a Form 5578 with the Internal Revenue Service (IRS). Don’t know what Form 5578 is? Most churches don’t. Here’s what leaders need to know.” - C.Leaders

“Christianity Today has been hosting an interesting debate on these issues. Paul Matzko…argued in the cover story of this month’s issue that tax exemption comes at a high a cost to the communities in which they are located….The argument is clever invoking many historical and legal details which, while factual, are misleading.” - Acton

“Congress has failed, to this point, to heed the latest urgent request from a coalition led by the Southern Baptist Ethics & Religious Liberty Commission to rescind a provision in federal law requiring churches to file tax returns for the first time in American history.” - BP News

“That provision imposes a 21 percent tax on employee parking benefits provided by thousands of congregations and nonprofits from coast to coast. To pay that tax, some churches may have to file form 990-T paperwork with the IRS if they provide parking for employees.” - RNS