Robyn Seymour - IRS Warning that It Will Be Watching Churches

IRS warned churches that it will be closely watching churches to make sure that they do not disobey the tax-exempt regulations. Both liberal and conservative factions have been filing numerous complaints against churches with the IRS. Just months before mid-term elections, the IRS is being asked to referee disputes over improper politicking from the pulpit.

"Any citizen can form a group and spy on all these churches and report the results," said Ed McCafferty, dean of the University Of Southern California School Of Law. "This entanglement of church and state vis-à-vis the tax laws are deeply out of control."

Churches have become important political forums during the past election seasons. They are allowed to discuss politics, but are not allowed to endorse candidates or parties. If they do, they face loosing their tax-exempt status. In 2004, the IRS investigated 110 organizations. Of the 90 investigations completed, 70% of the organizations were found violating the law. In 2005, the agency audited 70 churches and charities, which are currently ongoing investigations. Forty cases are pending for 2006.

According to the IRS, the only church ever stripped of a tax-exempt status for political activity was a church near Birmingham, New York, which was penalized after running ads against Bill Clinton in 1992. Most complaints reported are immediately found to be playful.