The Internal Revenue Service (IRS) has reversed its decision to exclude a Christian organization from tax benefits.
As previously reported in Legal Newsline, the IRS denied 501(3)(c) status to Christians Engaged because it is allegedly involved in prohibited political campaign intervention.
“We're grateful that the IRS changed course to bring its decision into line with the U.S. Constitution and its own regulations and our hope is that no other religious group or church will have to go through this again,” said Lea Patterson, an attorney with First Liberty Institute, which represents Christians Engaged.
Although the organization’s mission is to educate and empower average Christians to pray for the nation and elected officials, to vote in every election, and to be civically engaged, the IRS categorized the group as operating for "a substantial non-exempt private purpose and for the private interests" of Republicans.
Patterson said First Liberty Institute received an updated determination letter by fax earlier this month.
"It simply granted the tax-exempt status without further explanation and was signed by the same individual who signed it initially, Steven Martin, director of the IRS exempt organizations division,” she said. “We are pleased the IRS righted a wrong and we're grateful to all the elected officials who brought more attention to the case.”
Members of Congress, including Chip Roy (R-Texas), Ted Cruz (R-Texas), Burgess Owens (R-Utah), Lauren Boebert (R-Colorado), and Yvette Herrell (R-New Mexico), were among the representatives who signed a letter addressed to IRS Commissioner Charles Rettig urging him to personally review the decision and remove the individual or individuals responsible for the blatantly biased, discriminatory, and flawed reasoning, which resulted in the negative determination.
“The IRS must objectively analyze applications for taxes and status, and cannot allow political biases to creep into its decisions,” the June 25 letter states. “We urge you to immediately review Christian Engaged’s application for 501(3)(c) status personally, and terminate the IRS staff involved in the flawed and politically motivated reasoning behind the determination.”
Although Christians Engaged is bipartisan, the organization’s president Bunni Pounds ran for political office as a Republican.
“I am incredibly thankful to the IRS for doing the right thing, and we look forward to continuing our mission of educating more followers of Jesus to pray for our nation and to be civically engaged,” Pounds said in a statement online. “When we stand up, our republic works for all Americans.”
Christians Engaged incorporated in July 2019 as a Texas nonprofit corporation formed exclusively for charitable, religious, educational, or scientific purposes.
“What happens next is our client goes on and pursues this mission and is very excited to be able to focus on that,” Patterson told Legal Newsline. “As far as the legal case is concerned, everything's wrapped up because Christians Engaged is now considered a 501(3)(c), a tax-exempt charitable organization to which donations are tax-deductible.”