(RNS) — A federal judge rejected a settlement that would have lifted an IRS ban on pastors endorsing candidates, saying the court had no authority to approve an agreement, in a surprising end to a decades-long battle.
Judge J. Campbell Barker of the U.S. District Court for the Eastern District of Texas also dismissed the lawsuit filed by the National Religious Broadcasters, a Christian communicators group, and two Texas churches that was at the heart of the anticipated settlement. The plaintiffs had argued that the ban on endorsements violated their religious liberty. Under the IRS rule, known as the Johnson Amendment, tax-exempt nonprofits are barred from taking sides in political campaigns.
In dismissing the case on Tuesday (March 31), Barker said courts are barred from “providing declaratory relief with respect to federal taxes,” and therefore the court could not approve the settlement, as it required the court to make a decision that affected the plaintiffs’ tax status.
“The Johnson Amendment exempts organizations from taxes if they do not participate or intervene in political campaigns. If credited, then, plaintiffs’ claims would restrain the assessment or collection of a tax based on certain activity,” he wrote.
Barker also wrote that it is ”not obvious that the government will ever assess an income tax against plaintiffs or impose any other tax consequence under the Johnson Amendment.”
He also wrote that there was a simple solution for churches that wanted to avoid being penalized for endorsing …
