April 14, 1999
Judge upholds loss of tax-exempt status
___WASHINGTON (RNS)--A federal judge has approved the Internal Revenue Service's decision to lift the tax-exempt status of a church in Vestal, N.Y.
___In October 1992, the Church at Pierce Creek ran full-page advertisements in USA Today and the Washington Times urging Christians not to vote for then-presidential candidate Clinton. The ads claimed Clinton promoted "policies that are in rebellion to God's laws" and voting for him was "sin."
___U.S. District Court Judge Paul Friedman noted this marks the first time a legitimate church had been denied a tax exemption. The ruling means church members cannot legally deduct donations to the church from their taxable income.
___In his ruling, Friedman drew a distinction between oral statements made by a political candidate or minister in a house of worship and written statements intended for those outside the institution, such as the newspaper ads paid for by the Church at Pierce Creek.
___The chief attorney for the American Center for Law and Justice, which argued the case in court on behalf of the church, called the distinction "artificial" and the basis for an appeal.
___The IRS began investigating the church after Americans United for Separation of Church and State, a Washington-based constitutional watchdog group, brought the ads to its attention. In 1995, the agency revoked the church's tax-exempt status.
___Barry Lynn, Americans United's executive director, called Friedman's decision "a major blow to TV preacher Pat Robertson and other Religious Right leaders who have tried to politicize churches. This landmark ruling sends a strong message that churches must obey the prohibition on partisan politicking if they expect to remain tax exempt."
___However, a spokesman for the Southern Baptist Ethics & Religious Liberty Commission called the ruling an "atrocity."
___"It is very scary when the government starts going after legitimate churches simply because it does not approve of the content of the church's free speech," said Will Dodson, director of public policy.
___According to federal law, churches and religious leaders are not prohibited from speaking about politics or even endorsing candidates. However, the federal tax code denies tax-exempt status to organizations that endorse or denounce specific candidates.Frontpage / Contents/ Masthead / Why We're Here / Links / Archive / E-mail us/ SUBSCRIBE!