WASHINGTON (ABP) — A report from the Internal Revenue Service determined that nearly three quarters of the churches and other charities it investigated violated federal tax laws during the 2004 election.
The report, released Feb. 24 by a special IRS task force, shows that many of the churches and charities referred to the agency during 2004 engaged in illegal electioneering. Since 1954, churches and other charities organized under Section 501(c)(3) of the federal tax codes have been prohibited from clearly endorsing or opposing candidates. However, they may speak out freely on legislative or ballot issues.
In 82 cases where a decision has been reached, the IRS found violations in 60 cases. Another 28 cases are still open.
IRS officials determined that violations by three organizations were sufficiently serious to recommend revocation of their tax-exempt status. Another 55 violators were sent written warnings. The other less-serious violations involved cases in which the IRS “believes the organization engaged in prohibited campaign activity, but the activity appeared to be a one-time, isolated violation, and the organization corrected the violation where possible,” the report said.
In five cases, the IRS found non-political violations of tax law. In the remaining 18 cases, the groups were exonerated.
Citing “taxpayer privacy rights,” the IRS did not identify any of the churches or charities or specify the violations.
Some social conservatives have criticized the IRS in recent years for what they perceive as uneven enforcement of the law, singling out churches and other non-profits for endorsing conservative candidates while ignoring similar violations in favor of liberal candidates.
But the report said the violations it investigated covered “the full spectrum” of political ideology.
The report noted there are more than 1 million 501(c)(3) organizations in the United States, but only a handful of IRS agents who devote significant time to monitoring their compliance with election laws.
It also noted that an investigation of IRS enforcement of the electioneering law for the Treasury Department had “concluded that there was no evidence of political bias or direction [in IRS investigations into church electioneering], but did make several recommendations for improving the process.”
In response to those recommendations, the report said, IRS officials would provide more detailed information to churches — including a set of guidelines — to instruct them on how to avoid violating the law. It also recommended continuing to use the task force to study complaints about electioneering.
“If left unaddressed, the potential for charities, including churches, being used as arms of political campaigns and parties will erode the public's confidence in these institutions,” the report said.
Critics of the Religious Right praised the IRS report. “Religious leaders should speak to moral issues in a non-partisan manner, not attempt to control government or influence who is elected,” read a statement from Welton Gaddy, president of the Interfaith Alliance and pastor of Northminster Baptist Church in Monroe, La. “They must not use their freedom of speech to divide their congregations — or America — with partisan political activity.”
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