Tag: IRS

  • IRS: Churches Can Now Back Political Candidates, But Scholars Remain Concerned

    IRS: Churches Can Now Back Political Candidates, But Scholars Remain Concerned

    In a July 7 court filing, the Internal Revenue Service (IRS) announced that churches can now endorse political candidates without losing their tax-exempt status. This news follows over seven decades since the Johnson Amendment, a U.S. tax code provision that prohibited non-profit organizations and churches from intervening in political campaigns.

    Religion, American public life, and Black church studies scholars argue that this moment marks a significant erosion of the separation of church and state.

    Dr. Valerie Cooper“Both the government and the church are incredibly powerful institutions,” says Dr. Valerie Cooper, an associate professor of religion and society and Black church studies at Duke Divinity School and senior fellow at the Center for Theological Inquiry (CTI). “While it is important for citizens to be able to bring their religious convictions to their civic life, there is a concern, for me, as a person who loves the Christian church, about churches selling out for government power and losing their ability to be a prophetic voice.”

    Since 1954, only one house of worship has lost its tax-exempt status for violating this amendment.

    “The law has not changed, but the interpretation has,” says Dr. Corey D.B. Walker, Dean of Wake Forest University’s School of Divinity and a professor of the humanities. “What the IRS has said is that they’re not going to bring any cases for churches violating the Johnson Amendment.”

    According to Cooper, “conservative churches, particularly, white evangelicals, have been after this for years, if not decades,” she says in an interview with Diverse. “There are hot-button issues, and they’ve distributed information doing everything short of endorsements.”

    The issue has caught the attention of civil rights leaders like the Reverend Al Sharpton who said that the issue has to be studied carefully to ensure that “it does not create a double-edged sword.”Dr. Corey D.B. WalkerDr. Corey D.B. Walker

    “We cannot have a system in which right-wing congregations may endorse political candidates and others of a different political persuasion remain under scrutiny and lead to a situation that is not beneficial to all,” says Sharpton, the founder and president of National Action Network (NAN). 

    Sharpton, and NAN’s Board Chairman Reverend Dr. W. Franklyn Richardson, have convened a Zoom call with Black pastors and legal experts to explore the pros and cons of the decision

    Scholars of African American religion and religion in American public life have been tracking this movement for decades as well, says Walker. 

    “That danger the founders of the nation saw, that’s also the danger that we saw,” he says. “One of the real and understated issues that this new interpretation brings is that partisan political actors can now fund whatever limit they want into religious bodies to then instill and support particular political ideologies and projects, and that’s the danger of continually eroding the line between church and state.”

    Cooper, who was the first African American woman to earn tenure at Duke Divinity School in 2014, examines the ways religion does or does not impact other existing structures, like racism or inequality. 

    “I’m not just a religious scholar,” she adds. “I’m a religious person, and so I’m concerned about what appears to be a kind of political intervention.”

    Cooper says this kind of engagement could end with churches compromising their principles for political reasons.

    “Almost exactly a year before his assassination, Martin Luther King Jr. gives us a speech/sermon where he comes out against the Vietnam War, and many people in the Civil Rights Movement were horrified by this choice, because Johnson had been such an ally,” she says. “But King really felt that it was his obligation to speak prophetically and according to his faith, not according to what was maybe even wise political policy.”

    Cooper questions how this new development might impact church leaders’ ability to speak prophetically in the present day. 

    “What does that mean? Does that mean that the pastor is then no longer free to speak, even to call out the candidate, if he or she stops doing what is in the interest of the church,” she asks.

    Walker says that he is concerned about making absolute claims on public life that bypass shared beliefs, languages, and common frameworks.

    “So, the question becomes, what is the Court of Appeal when individuals are discriminated against, such as our LGBTQ brothers and sisters, or when individuals find themselves without funding for public schools because public school funding has been funneled into private religious schools,” he says. “What happens when you have reproductive rights no longer supported because reproductive rights are seen as anathema to God?”

    Walker adds that this development blurs the lines between churches and families.

    “Churches, congregations, religious bodies and worship are not the same as families discussing politics,” he says. “Families belong in the private sphere, so the idea that a worship service and a sermon are the same as a family in their living room discussing politics begs the question, what logic is operative at this moment?” 

    Cooper believes that this intervention on churches will impact everyone, even those who fought to remove the restrictions of the Johnson Amendment.

    “If people begin winning elections at the cost of the health and vitality of churches, we have not won anything,” she says.

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  • IRS Plans to Revoke Harvard’s Tax-Exempt Status

    IRS Plans to Revoke Harvard’s Tax-Exempt Status

    The Internal Revenue Service is reportedly planning to rescind Harvard University’s tax-exempt status amid its showdown with the Trump administration over academic freedom, CNN reported.

    Citing two anonymous sources, CNN reported that a decision is likely coming soon. If Harvard’s tax-exempt status is revoked, the move would appear to be at the behest of President Donald Trump, who has railed against the private university in posts on his own Truth Social platform.

    “Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!” Trump wrote Tuesday.

    In a Wednesday post, the president said that Harvard should “no longer receive Federal Funds” because it “is a JOKE [that] teaches Hate and Stupidity.”

    Harvard is currently in a standoff with the Trump administration, which has demanded a series of wide-reaching changes it says are needed to address alleged antisemitism on campus related to pro-Palestinian protests. Those demands include reforms in admissions, hiring practices, student disciplinary processes and a facultywide plagiarism review, among other changes.

    Harvard, however, rejected Trump’s demands on Monday, calling them an affront to institutional autonomy.

    The Trump administration promptly retaliated, freezing $2.2 billion in federal grant funding and $60 million in contracts.

    Neither the IRS nor Harvard respond to requests for comment from Inside Higher Ed.

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  • IRS Issues Employer Guidance on COVID-19 Paid Leave Tax Credits – CUPA-HR

    IRS Issues Employer Guidance on COVID-19 Paid Leave Tax Credits – CUPA-HR

    by CUPA-HR | September 22, 2021

    On September 7, the U.S. Treasury Department and Internal Revenue Service (IRS) issued Notice 2021-53, which includes guidance to employers on reporting the amount of qualified sick and family leave wages paid to employees for leave taken in 2021 as provided by the Families First Coronavirus Response Act (FFCRA) and as amended by the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act of 2021.

    The FFCRA required private sector employers with 500 or fewer employees to provide emergency paid family and medical leave and emergency paid sick leave to employees who could not work or telework due to certain COVID-19 complications. The FFCRA also established fully refundable tax credits that employers may receive after providing the emergency paid family and sick leave. The tax credits under the FFCRA were set to expire on December 31, 2020, but they were extended to cover wages voluntarily paid through March 31, 2021 under the Consolidated Appropriations Act of 2021 and again through September 30, 2021 under the American Rescue Plan Act of 2021. Employers were no longer required to provide the paid sick and family and medical leave wages to employees after the enactment of the Consolidated Appropriations Act, but employers that voluntarily provided paid leave that would have satisfied the paid family leave and paid sick leave requirements under the FFCRA were eligible for the same fully refundable tax credits.

    The new IRS notice states that employers will be required to report the amount of qualified sick and family leave wages paid to employees between January 1 and September 30, 2021 either on the Form W-2, Box 14, or in a separate statement provided with the Form W-2. The notice also includes model language to help employers communicate information about the qualified sick leave and family and medical leave wages to employees, as well as the impact these wages may have on tax credits the employee may be entitled to with respect to self-employment income.

    CUPA-HR will keep members apprised of any additional tax-related guidance from the IRS as it relates to COVID-19 policies and guidance.



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