Saturday, September 16, 2006

IRS Investigating Liberal Calif. Church

LOS ANGELES - The Internal Revenue Service has ordered a prominent liberal church to turn over documents and e-mails it produced during the 2004 election year that contain references to political candidates.

The IRS is investigating whether All Saints Episcopal Church in Pasadena violated the federal tax code when its former rector, Rev. George F. Regas, delivered an anti-war sermon on the eve of the last presidential election.

Tax-exempt organizations are barred from intervening in political campaigns and elections, and the church could lose its tax-exempt status.

Rev. Ed Bacon received a summons Thursday ordering the church to present any politically charged sermons, newsletters and electronic communications by Sept 29.

Bacon was ordered to testify before IRS officials Oct. 11. He said he will inform his roughly 3,500 congregants about the investigation at Sunday's services, and will seek their advice on whether to comply.

"There is a lot at stake here," Bacon said. "If the IRS prevails, it will have a chilling effect on the practice of religion in America."

An IRS spokesperson declined comment on the investigation

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