The IRS and Department of Treasury have issued proposed regulations under IRC Section 7611 to clarify the procedures for authorizing church tax inquiries and examinations. The proposed regulations replace references to positions that were abolished under the IRS Restructuring and Reform Act with references that are consistent with the statute and IRS's current organizational structure. Written or electronic comments and requests for a public hearing must be received by November 3, 2009.

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Labels: church, faith-based organizations

Many IRS 501(c)(3) churches & religious organizations are not aware that they may risk losing their tax-exempt status by becoming involved in certain political campaign activity. For starters, all 501(c)(3) organizations are explicitly prohibited from directly or indirectly participating in any political campaign on behalf of (or in opposition to) candidates for public office. Some prohibited activities include posting a candidate sign on the church lawn, public statements of candidate preference made by religious leaders, and financial contributions made to political campaign funds.

However, certain political campaign activities are allowed, depending on the facts and circumstances. Allowable activities are generally non-partisan voter education projects, such as non-partisan voter registration and get-out-the-vote drives, the presentation of public forums, and the publication of voter education guides.

Learn more from the IRS about the DOs and DON’Ts of Political Campaign Activity for 501(c)(3) Churches & Religious Organizations (see pages 7-15) at: www.irs.gov/pub/irs-pdf/p1828.pdf

Labels: 501c3, church, nonprofit, political campaign