Puerto Rico Will Begin Cracking Down on Churches That Violate Non-Profit Rules

[Disir]

In the U.S., we have a problem where the IRS never seems to investigate churches even when their pastors endorse political candidates from the pulpit, blatantly violating the rules by which all non-profits must abide. More broadly, churches are getting away with breaking the rules.

They may be cracking down on those very problems starting this May in Puerto Rico.

According to the group Ateístas de Puerto Rico, Secretary of the Treasury Juan Zaragoza says his department will soon begin auditing churches that, like other non-profits, receive broad tax exemptions. They’re specifically looking for places that operate as non-profit churches, but really do plenty of for-profit work without paying taxes on that income:
Puerto Rico Will Begin Cracking Down on Churches That Violate Non-Profit Rules

Amen.

 

[Dale Smith]

In the U.S., we have a problem where the IRS never seems to investigate churches even when their pastors endorse political candidates from the pulpit, blatantly violating the rules by which all non-profits must abide. More broadly, churches are getting away with breaking the rules.

They may be cracking down on those very problems starting this May in Puerto Rico.

According to the group Ateístas de Puerto Rico, Secretary of the Treasury Juan Zaragoza says his department will soon begin auditing churches that, like other non-profits, receive broad tax exemptions. They’re specifically looking for places that operate as non-profit churches, but really do plenty of for-profit work without paying taxes on that income:
Puerto Rico Will Begin Cracking Down on Churches That Violate Non-Profit Rules

Amen.

Didn't Reverend Wright and Father Pfleguer endorse the Barrypuppet? Seems to me that leftards only worry about what pastors say from the pulpit that doesn't toe leftard lines. Churches shouldn't use the 501 c3 exemption and instead use contributions to only pay the bills and anything outside of that needs to be under a certain amount so the IRS and this corporate federal "gubermint" can't get their hands on some of it.

 

[Disir]

In the U.S., we have a problem where the IRS never seems to investigate churches even when their pastors endorse political candidates from the pulpit, blatantly violating the rules by which all non-profits must abide. More broadly, churches are getting away with breaking the rules.

They may be cracking down on those very problems starting this May in Puerto Rico.

According to the group Ateístas de Puerto Rico, Secretary of the Treasury Juan Zaragoza says his department will soon begin auditing churches that, like other non-profits, receive broad tax exemptions. They’re specifically looking for places that operate as non-profit churches, but really do plenty of for-profit work without paying taxes on that income:
Puerto Rico Will Begin Cracking Down on Churches That Violate Non-Profit Rules

Amen.

Didn't Reverend Wright and Father Pfleguer endorse the Barrypuppet? Seems to me that leftards only worry about what pastors say from the pulpit that doesn't toe leftard lines. Churches shouldn't use the 501 c3 exemption and instead use contributions to only pay the bills and anything outside of that needs to be under a certain amount so the IRS and this corporate federal "gubermint" can't get their hands on some of it.

Is that right?

 

[Avatar4321]

Good. Then these unconstitutional laws will be challenged and throw out. Pastors have literally been sending the irs tapes of their sermons trying to get the irs to enforce this so it can be challenged and overturned for years.

Not sure out pr can enforce federal laws though

 

[Picaro]

In the U.S., we have a problem where the IRS never seems to investigate churches even when their pastors endorse political candidates from the pulpit, blatantly violating the rules by which all non-profits must abide. More broadly, churches are getting away with breaking the rules.

They aren't violating any rules. That's a myth that they have to abide by 'non-profit' rules for any reason. Churches and pastors have the same rights to free speech and to speak out on whatever they want to, especially on social issues.

Churches only file voluntary 501.c forms as a favor to donors who need some sort of a paper trail for tax deductible contributions to the church. They are tax excepted, not tax exempt under Federal law here in the U.S.

 

[Disir]

Charities, Churches and Politics
The ban on political campaign activity by charities and churches was created by Congress more than a half century ago. The Internal Revenue Service administers the tax laws written by Congress and has enforcement authority over tax-exempt organizations. Here is some background information on the political campaign activity ban and the latest IRS enforcement statistics regarding its administration of this congressional ban.

In 1954, Congress approved an amendment by Sen. Lyndon Johnson to prohibit 501(c)(3) organizations, which includes charities and churches, from engaging in any political campaign activity. To the extent Congress has revisited the ban over the years, it has in fact strengthened the ban. The most recent change came in 1987 when Congress amended the language to clarify that the prohibition also applies to statements opposing candidates.

Currently, the law prohibits political campaign activity by charities and churches by defining a 501(c)(3) organization as one "which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office."

The IRS has published Revenue Ruling 2007-41, which outlines how churches, and all 501(c)(3) organizations, can stay within the law regarding the ban on political activity. Also, the ban by Congress is on political campaign activity regarding a candidate; churches and other 501(c)(3) organizations can engage in a limited amount of lobbying (including ballot measures) and advocate for or against issues that are in the political arena. The IRS also has provided guidance regarding the difference between advocating for a candidate and advocating for legislation. See political and lobbying activities.

Each election cycle, the IRS reminds 501(c)(3) exempt organizations to be aware of the ban on political campaign activity. The IRS published its most recent reminder in a public news release which you can read here.

The division within the IRS responsible for overseeing churches and charities is the Tax Exempt and Government Entitities Division. TEGE has created a Web page entitled Charities, Churches, and Educational Organizations - Political Campaign Intervention. It is dedicated to the IRS most recent activities related to 501(c)(3) and political activity.

A definitive court case on the issue of free speech and political expression is Branch Ministries Inc. versus Rossotti. In that case, the court upheld the constitutionality of the ban on political activity. The court rejected the plaintiff church's allegations that it was being selectively prosecuted because of its conservative views and that its First Amendment right to free speech was being infringed.

The court wrote: "The government has a compelling interest in maintaining the integrity of the tax system and in not subsidizing partisan political activity, and Section 501(c)(3) is the least restrictive means of accomplishing that purpose."
Charities, Churches and Politics

 

[Picaro]

Charities, Churches and Politics
The ban on political campaign activity by charities and churches was created by Congress more than a half century ago. The Internal Revenue Service administers the tax laws written by Congress and has enforcement authority over tax-exempt organizations. Here is some background information on the political campaign activity ban and the latest IRS enforcement statistics regarding its administration of this congressional ban.

In 1954, Congress approved an amendment by Sen. Lyndon Johnson to prohibit 501(c)(3) organizations, which includes charities and churches, from engaging in any political campaign activity. To the extent Congress has revisited the ban over the years, it has in fact strengthened the ban. The most recent change came in 1987 when Congress amended the language to clarify that the prohibition also applies to statements opposing candidates.

Currently, the law prohibits political campaign activity by charities and churches by defining a 501(c)(3) organization as one "which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office."

The IRS has published Revenue Ruling 2007-41, which outlines how churches, and all 501(c)(3) organizations, can stay within the law regarding the ban on political activity. Also, the ban by Congress is on political campaign activity regarding a candidate; churches and other 501(c)(3) organizations can engage in a limited amount of lobbying (including ballot measures) and advocate for or against issues that are in the political arena. The IRS also has provided guidance regarding the difference between advocating for a candidate and advocating for legislation. See political and lobbying activities.

Each election cycle, the IRS reminds 501(c)(3) exempt organizations to be aware of the ban on political campaign activity. The IRS published its most recent reminder in a public news release which you can read here.

The division within the IRS responsible for overseeing churches and charities is the Tax Exempt and Government Entitities Division. TEGE has created a Web page entitled Charities, Churches, and Educational Organizations - Political Campaign Intervention. It is dedicated to the IRS most recent activities related to 501(c)(3) and political activity.

A definitive court case on the issue of free speech and political expression is Branch Ministries Inc. versus Rossotti. In that case, the court upheld the constitutionality of the ban on political activity. The court rejected the plaintiff church's allegations that it was being selectively prosecuted because of its conservative views and that its First Amendment right to free speech was being infringed.

The court wrote: "The government has a compelling interest in maintaining the integrity of the tax system and in not subsidizing partisan political activity, and Section 501(c)(3) is the least restrictive means of accomplishing that purpose."
Charities, Churches and Politics

Churches are not 501.c3's, so this is moot. Some have charities and other organizations that they register as 501.c#'s, but the church itself isn't subject to it, they're excepted, and pastors and ministers can speak out on issue they care to, just as anybody else can. See the guidelines for 501's for that; the rules you've posted don't apply to churches, they apply to 501c3's. Churches are not required to file anything at all.

See this for a beginner intro. I'll find the other guideline later.

Annual Exempt Organization Return: Who Must File

Annual Exempt Organization Return: Who Must File

Every organization exempt from federal income tax under Internal Revenue Code section 501(a) must file an annual information return except:

1. 
   
   
   • A church, an interchurch organization of local units of a church, a convention or association of churches,
   • An integrated auxiliary of a church,
   • A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs,
   • A school below college level affiliated with a church or operated by a religious order,
   • Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries,
   • An exclusively religious activity of any religious order,

1. 
   

Note the use of the word except; it's different from the term exempt', a definite legal distinction ...


A pastor or minister has every right to endorse any candidate he wants, just as any other citizen does. They can speak out, from their pulpits, on any issue without regard as to whether it has become politicized or not. that includes abortion, the Gay rights hoax, persecution of Christians or anybody else, crime rates, or any other topic.

 

[Picaro]

See also IRS guidelines limiting audits and other stuff; and also be aware that the IRS isn't the 'last word' on any of this, they just have administrative procedures they follow, and aren't the arbitrator of what is legal or not.

Special Rules Limiting IRS Authority to Audit a Church

 

[BreezeWood]

Good. Then these unconstitutional laws will be challenged and throw out. Pastors have literally been sending the irs tapes of their sermons trying to get the irs to enforce this so it can be challenged and overturned for years.

Not sure out pr can enforce federal laws though

... so it can be challenged and overturned for years.


and hopefully the religious zealots can prevent anyone but themselves from nominating the next Justice so only their point of view will be upheld ....

.