IRS Signals Upcoming Johnson Amendment Guidance
The (Internal Revenue Service) IRS is developing updated guidance on the Johnson Amendment. The rule prohibits 501(c)(3) organizations from endorsing political candidates.
Assistant Secretary for Tax Policy and acting IRS Chief Counsel Ken Kies, Treasury’s top tax official, also reportedly noted that the agency is reviewing the tax-exempt status of certain 501(c)(3)s alleged to have supported violent activity, though it is unclear when any public action may follow.
These developments come on the heels of a significant IRS position outlined in a July court filing, in which the agency stated that churches and houses of worship may endorse political candidates to their congregations without violating the Johnson Amendment. The IRS described such communications as private, akin to “a family discussion concerning candidates,” and therefore not considered prohibited political activity when delivered through normal religious channels.
The Johnson Amendment, enacted in 1954, has been the subject of ongoing debate, including repeated calls for repeal.
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Many nonprofits continue to voice strong concerns about efforts to weaken the rule.
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The National Council of Nonprofits, among others, cautioned that rolling back these protections could open the door to political money flowing through charitable organizations.
The American Society of Association Executives (ASAE) will continue tracking these developments closely and keep members informed as the IRS releases further guidance.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.