FALWELL MISLEADING RELIGIOUS LEADERS ABOUT TAX LAW, AMERICANS UNITED TELLS IRS
Church-State Watchdog Group Urges Tax Agency To Crack Down On Virginia TV Preacher's Disinformation Campaign

The Rev. Jerry Falwell is misleading religious leaders about the rules governing churches and partisan politics, and the Internal Revenue Service should take immediate steps to clarify the situation, says Americans United for Separation of Church and State.

"Falwell is misleading America's religious leaders about federal tax law," said the Rev. Barry W. Lynn, Americans United executive director. "His distortions could have serious consequences for any pastor foolish enough to take his advice. The IRS should step in now."

In a July 28 letter to the IRS, Lynn accused the Lynchburg, Va.-based TV preacher of launching a disinformation campaign.

Earlier this month, AU filed a complaint with the IRS about Falwell's use of his tax-exempt Jerry Falwell Ministries to send out an e-mail and post a website message endorsing George W. Bush for president. In response, Falwell issued another alert to supporters telling religious leaders that they do not need to worry about federal tax law.

Under the headline, "NO CHURCH HAS EVER LOST ITS TAX-EXEMPT STATUS," Falwell wrote, "Every American pastor, as a tax-paying citizen, is free to express his views and opinions."

Falwell included an analysis by Mat Staver of Liberty Counsel, a Religious Right legal group affiliated with Falwell, asserting that the IRS rarely enforces the "no politicking" rule and implying that churches should not worry about it. Staver wrote that "the IRS has almost no teeth."

Lynn said Falwell and Staver are urging churches to play a dangerous game. He noted that in 1995, the IRS revoked the tax-exempt status of the Church at Pierce Creek in New York for partisan politicking. Other churches accused of politicking have undergone lengthy audits or their pastors have been have been visited by IRS agents.

Falwell, Lynn noted, is in no position to advise churches in this area. In 1993, his Old Time Gospel Hour was required by the IRS to pay $50,000 in back taxes for diverting charitable contributions into a political action committee that sought to elect congressional candidates. The ministry also had its tax exemption revoked retroactively for the years 1986-87.

On two recent occasions, Falwell has denied on national television that the Old Time Gospel Hour's tax exemption was revoked. But Lynn noted that the IRS sanction is a matter of public record and noted that it was widely reported at the time.

In AU's letter to the IRS, Lynn sent documents supporting its charge that Falwell is misleading pastors. Lynn urged the tax agency to take action against Falwell and clarify tax law for religious leaders.

"Looked at in conjunction with the material I sent on July 15, I think it is obvious that Falwell is working assiduously to skirt the Internal Revenue Code and urging other religious leaders to do the same. Such a brazen challenge to our nation's tax laws must not go unanswered," wrote Lynn.

He continued, "I also urge you to immediately initiate an investigation into Falwell's apparent misuse of a tax-exempt organization for partisan politics and issue a public statement of some sort to refute his misinformation campaign."

Americans United is a religious liberty watchdog group based in Washington, D.C. Founded in 1947, the organization educates Americans about the importance of church-state separation in safeguarding religious freedom.
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BACKGROUND - Church Electioneering
Houses of worship and religious leaders may address political and social issues, but federal tax law bars most non-profit groups from endorsing or opposing candidates for public office. Churches, temples and mosques must refrain from outright electioneering. It is not the job of religious leaders to tell people which candidates to vote for or not vote for.