All Saints challenges IRS 'vagueness'

IRS won't say how sermon violated rules
The large and liberal All Saints Episcopal Church in Pasadena, California—after squirming on the hook for two years as the Internal Revenue Service examined the content of a preelection sermon—has been tossed back into the religious stream because its “political intervention” favoring one candidate “appears to be a one-time occurrence.” The church will not lose its tax-exemption over the October 31, 2004, sermon.

In delivering that judgment, the Department of the Treasury letter that arrived September 10 also noted that policies were in place at the 3,500-member church to prevent prohibited political campaign activities. But the department urged the church to remind future speakers not to endorse candidates.


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