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DelBene, Huffman Lead Call on IRS to Review ‘Church Status’ for Known Hate Group

Today, Representatives Suzan DelBene (WA-01) and Jared Huffman (CA-02) led their colleagues in urging Treasury Secretary Janet Yellen and Internal Revenue Service (IRS) Commissioner Danny Werfel to review the status of the Family Research Council (FRC) as an “association of churches” for tax filing purposes.

In August 2022, the lawmakers sent a letter to then-Commissioner Charles P. Rettig emphasizing the importance of the IRS’ commitment to ensuring tax-exempt organizations comply with applicable tax laws, and he pointed to existing requirements for churches and religious organizations.

“While we appreciate the IRS’s dedication to these matters, our concerns remain regarding transparency and the fair application of tax laws to all entities,” the members wrote. “We understand the importance of religious institutions to their congregants, and we believe that religious freedom is a cherished American value and constitutional right. We also believe that our tax code must be applied fairly and judiciously. Tax-exempt organizations should not be exploiting tax laws applicable to churches to avoid public accountability and IRS examination of their activities.”

The members went on to request that the IRS:

  1. Review the status of tax-exempt organizations that have obtained church status, but do not satisfy the requirements of a church, integrated auxiliary, or convention or association of churches.
  2. Improve the process for reviewing applications from organizations seeking church status to ensure that organizations that are not churches cannot abuse the tax code.
  3. Answer a series of questions laid out in the letter.
  4. Provide information about whether existing guidance is sufficient to prevent abuse and what resources or Congressional actions are needed to ensure adequate enforcement moving forward.

The letter was signed by Representatives Becca Balint (VT-At-Large), Suzanne Bonamici (OR-01), Julia Brownley (CA-26), Sean Casten (IL-06), Danny Davis (IL-07), Dwight Evans (PA-03), Barbara Lee (CA-12), Eleanor Holmes Norton (DC-At-Large), Tom Suozzi (NY-03), Jill Tokuda (HI-02), and Debbie Wasserman Schultz (FL-25).

A copy of the letter can be found here.