Government Watchdog Group Seeks IRS Investigation of Church's Alleged Political Activities

Dear Commissioner Everson:

Citizens for Responsibility and Ethics in Washington ("CREW") respectfully requests an immediate Internal Revenue Service ("IRS") investigation into the activities of Living Word Christian Center, based in Brooklyn Park, MN. Based on a video of a recent church-sponsored event, it appears that Pastor Mac Hammond violated federal tax law by openly endorsing state Sen. Michele Bachmann's candidacy in a U.S. House of Representatives race. Because you pledged earlier this year to investigate violations of tax law during, and not after, the election cycle, we ask that you look into this matter immediately. Pursuant to IRS procedures, CREW is also submitting this complaint to the IRS field office in Dallas.

Tax law absolutely prohibits public charities from participating or intervening in any political campaign on behalf of, or in opposition to any candidate for public office. 26 C.F.R. § 1.501(c)(3)-1(c)(3)(iii); United States v. Dykema, 666 F.2d 1096, 1101 (7th Cir. 1981), cert. denied, 456 U.S. 983 (1982); Association of the Bar of the City of New York v. Commissioner, 858 F.2d 876 (2d Cir. 1988), cert, denied, 490 U.S. 1030 (1989). A candidate for public office is defined as an individual who offers himself or herself, or is proposed by others, as a contestant for an elective federal, state, or local office. G.C.M. 39811 (June 30, 1989). The IRS considers all of the facts and circumstances in determining whether a public charity has illegally intervened or participated in a political campaign. See Rev. Rul. 78-248, 1978-1, C.B. 154. A public charity participates or intervenes in a political campaign if it does anything that supports or opposes a candidate through any method of distribution, including but not limited to, oral statements, or distribution of written or printed materials. G.C.M. 39811 (June 30, 1989); See also 26 C.F.R. § 53.4945-3(a)(2).

The IRS is solely responsible for enforcing the provisions of IRC § 501(c)(3). See IRC § 7801(a)(2). As a function of this enforcement authority, and a finding of increased political activities among charities and churches in 2004, the IRS has advised the regulated community of its expanded education efforts and enforcement activities. Remarks of Commissioner of Internal Revenue Mark W. Everson at the City Club of Cleveland, (February 24, 2006), http://irs.gov/irs/article/0„id=l54788,00.html; See also Tax Guide for Churches and Religious Organizations, I.R.S. Pub. 1828 ("Pub. 1828")(September 2003).

Although Pastor Hammond qualified his explicit endorsement of Sen. Bachmann by noting, "we can't publicly endorse as a church and would not for any candidate," this statement does not take away from the fact that the substantial resources of the Living Word Christian Center were used to provide the forum and broadcast the statement. Id. While it is legal for church leaders in their individual capacity to endorse or support campaigns, it is illegal for them to facilitate the use of church resources to do so. Pub. 1828 at 7.

Sen. Bachman's statements injected highly partisan statements in her remarks:

IRS Publication 1828 notes that activity similar to that engaged in by Living Word Christian Center constitutes illegal campaign intervention:

In February, before the City Club of Cleveland, you said, "Are we going to let these political activities spread to our charities and churches? Now is the time to act, before it is too late." CREW agrees, and asks that you immediately order an investigation into these activities before the end of this election cycle.

Thank you for your consideration of this important matter. Please contact me if I can provide additional information or be of further assistance.