IRS has troubles with the teachings of Jesus Christ
A Pasadena church may lose its tax exempt status because of message that challenges government policy.


The won't-be-bullied pulpit
A Pasadena cleric cited by the IRS refuses to surrender 'the very soul of our ministry.'
By George Regas (Rector of All Saints Church in Pasadena from 1967 to 1995)

LA Times November 9, 2005
(illustration, Tim Nyberg, "The Rector's Dilemma"

I CAN'T TELL YOU how surprised and shocked I was — and how disappointed — when All Saints Church was informed that the sermon I preached on Oct. 31, 2004, might have constituted an impermissible intervention into a political campaign under the Internal Revenue Code. (see original LA Times story below)

I gave the sermon on the Sunday before the presidential election. It was called, "If Jesus Debated Sen. Kerry and President Bush." In it, I took great care to say that I did not want to tell people how to vote, but that I was challenging them to go into the voting booth on Tuesday taking with them all that they knew about Jesus, the peacemaker. To take all that Jesus meant to them and then vote their deepest values.

No one from the IRS attended my sermon, to my knowledge. The agency apparently saw an article about it in The Times the following day. The Times described it as "an indictment of the Bush administration's policies on Iraq" and noted that I had criticized the drive to develop more nuclear weapons and described tax cuts that benefited the rich as "inimical to the values of Jesus." Based on that, the IRS made a subjective determination that the sermon implicitly opposed one candidate and endorsed another.

During my 28 years as rector of All Saints Church, I often preached sermons that touched upon what some would characterize as "political" issues. So many of the political issues that we confront today coincide with deeply held, core religious beliefs: issues relating to marriage, family, community and yes, even war and foreign policy.

It seems to me that fundamentally moral issues, such as peace and the alleviation of poverty, are indisputably the province of church pulpits, regardless of which politicians are debating that week or where a Sunday happens to fall in an election cycle. My successor, Ed Bacon, has continued this tradition of proclaiming a theologically based commitment to alleviating poverty and promoting peace and social justice.

An IRS audit will not diminish the prophetic ministry of All Saints Church. Peace and the alleviation of poverty are core values of the congregation. If we were to allow the IRS to silence us, we would lose our integrity and the very soul of our ministry. That will not happen.

Some fear that the threats of the IRS and the publicity surrounding my sermon will have a chilling effect on other churches that would like to speak out for peace in this war-fractured world. Perhaps it will for a few.

But I think many more will take courage from this story and find ways to be true to the core values of their faith. They will find creative ways to proclaim that religious communities must stop blessing war and violence. I am heartened by the outpouring of support that All Saints has already received from many in the faith community whose beliefs span a wide spectrum. They realize this matter involves 1st Amendment principles we all hold dear.

My sermon did not cross the line that violates the tax laws governing churches. The IRS apparently is making a subjective determination that I implicitly opposed one candidate and endorsed the other. Its analysis ignores the fact that I explicitly stated that I was not advising anyone how to vote.

I recognize that churches must comply with the tax law. When I was rector of All Saints Church, we diligently enforced a policy against campaign intervention. Bacon has carefully continued this policy.

Some might argue that religious communities should stay out of politics altogether. But that would render our message of core moral values — the values that Jesus taught us — irrelevant. The fact is, all life is arguably political. For example, Jesus says to us: "Heal the sick." Thus, when we address the desperate health needs in the nation and across the planet, this is at once a moral and a political issue.

The rightful role of communities of faith is not to speak and act as though God is in the pocket of the Democratic or Republican parties. Our role is to boldly proclaim the biblical themes of justice for all, peace on Earth, the sacredness of all life and the preciousness and fragility of the environment.


Antiwar Sermon Brings IRS Warning
All Saints Episcopal Church in Pasadena risks losing its tax-exempt status because of a former rector's remarks in 2004.
By Patricia Ward Biederman and Jason Felch, LATimes Staff Writers
November 7, 2005

The Internal Revenue Service has warned one of Southern California's largest and most liberal churches that it is at risk of losing its tax-exempt status because of an antiwar sermon two days before the 2004 presidential election.

Rector J. Edwin Bacon of All Saints Episcopal Church in Pasadena told many congregants during morning services Sunday that a guest sermon by the church's former rector, the Rev. George F. Regas, on Oct. 31, 2004, had prompted a letter from the IRS.

In his sermon, Regas, who from the pulpit opposed both the Vietnam War and 1991's Gulf War, imagined Jesus participating in a political debate with then-candidates George W. Bush and John Kerry. Regas said that "good people of profound faith" could vote for either man, and did not tell parishioners whom to support.

But he criticized the war in Iraq, saying that Jesus would have told Bush, "Mr. President, your doctrine of preemptive war is a failed doctrine. Forcibly changing the regime of an enemy that posed no imminent threat has led to disaster."

On June 9, the church received a letter from the IRS stating that "a reasonable belief exists that you may not be tax-exempt as a church … " The federal tax code prohibits tax-exempt organizations, including churches, from intervening in political campaigns and elections.

The letter went on to say that "our concerns are based on a Nov. 1, 2004, newspaper article in the Los Angeles Times and a sermon presented at the All Saints Church discussed in the article."

The IRS cited The Times story's description of the sermon as a "searing indictment of the Bush administration's policies in Iraq" and noted that the sermon described "tax cuts as inimical to the values of Jesus."

As Bacon spoke, 1984 Nobel Peace Prize winner Archbishop Desmond Tutu, a co-celebrant of Sunday's Requiem Eucharist, looked on.

"We are so careful at our church never to endorse a candidate," Bacon said in a later interview.

"One of the strongest sermons I've ever given was against President Clinton's fraying of the social safety net."

Telephone calls to IRS officials in Washington, D.C., and Los Angeles were not returned.

On a day when churches throughout California took stands on both sides of Proposition 73, which would bar abortions for minors unless parents are notified, some at All Saints feared the politically active church had been singled out.

"I think obviously we were a bit shocked and dismayed," said Bob Long, senior warden for the church's oversight board. "We felt somewhat targeted."

Bacon said the church had retained the services of a Washington law firm with expertise in tax-exempt organizations.

And he told the congregation: "It's important for everyone to understand that the IRS concerns are not supported by the facts."

After the initial inquiry, the church provided the IRS with a copy of all literature given out before the election and copies of its policies, Bacon said.

But the IRS recently informed the church that it was not satisfied by those materials, and would proceed with a formal examination. Soon after that, church officials decided to inform the congregation about the dispute.

In an October letter to the IRS, Marcus Owens, the church's tax attorney and a former head of the IRS tax-exempt section, said, "It seems ludicrous to suggest that a pastor cannot preach about the value of promoting peace simply because the nation happens to be at war during an election season."

Owens said that an IRS audit team had recently offered the church a settlement during a face-to-face meeting.

"They said if there was a confession of wrongdoing, they would not proceed to the exam stage. They would be willing not to revoke tax-exempt status if the church admitted intervening in an election."

The church declined the offer.

Long said Bacon "is fond of saying it's a sin not to vote, but has never told anyone how to vote. We don't do that. We preach to people how to vote their values, the biblical principles."

Regas, who was rector of All Saints from 1967 to 1995, said in an interview that he was surprised by the IRS action "and then I became suspicious, suspicious that they were going after a progressive church person."

Regas helped the current church leadership collect information for the IRS on his sermon and the church's policies on involvement in political campaigns.

Some congregants were upset that a sermon citing Jesus Christ's championing of peace and the poor was the occasion for an IRS probe.

"I'm appalled," said 70-year-old Anne Thompson of Altadena, a professional singer who also makes vestments for the church.

"In a government that leans so heavily on religious values, that they would pull a stunt like this, it makes me heartsick."

Joe Mirando, an engineer from Burbank, questioned whether the 3,500-member church would be under scrutiny if it were not known for its activism and its liberal stands on social issues.

"The question is, is it politically motivated?" he said. "That's the underlying feeling of everyone here. I don't have enough information to make a decision, but there's a suspicion."

Bacon revealed the IRS investigation at both morning services. Until his announcement, the mood of the congregation had been solemn because the services remembered, by name, those associated with the church who had died since last All Saints Day.

Regas' 2004 sermon imagined how Jesus would admonish Bush and Kerry if he debated them. Regas never urged parishioners to vote for one candidate over the other, but he did say that he believes Jesus would oppose the war in Iraq, and that Jesus would be saddened by Bush's positions on the use and testing of nuclear weapons.

In the sermon, Regas said, "President Bush has led us into war with Iraq as a response to terrorism. Yet I believe Jesus would say to Bush and Kerry: 'War is itself the most extreme form of terrorism. President Bush, you have not made dramatically clear what have been the human consequences of the war in Iraq.' "

Later, he had Jesus confront both Kerry and Bush: "I will tell you what I think of your war: The sin at the heart of this war against Iraq is your belief that an American life is of more value than an Iraqi life. That an American child is more precious than an Iraqi baby. God loathes war."

If Jesus debated Bush and Kerry, Regas said, he would say to them, "Why is so little mentioned about the poor?''

In his own voice, Regas said: ''The religious right has drowned out everyone else. Now the faith of Jesus has come to be known as pro-rich, pro-war and pro-American…. I'm not pro-abortion, but pro-choice. There is something vicious and violent about coercing a woman to carry to term an unwanted child."

When you go into the voting booth, Regas told the congregation, "take with you all that you know about Jesus, the peacemaker. Take all that Jesus means to you. Then vote your deepest values."

Owens, the tax attorney, said he was surprised that the IRS is pursuing the case despite explicit statements by Regas that he was not trying to influence the congregation's vote.

"I doubt it's politically motivated," Owens said. ""I think it is more a case of senior management at IRS not paying attention to what the rules are."

According to Owens, six years ago the IRS used to send about 20 such letters to churches a year. That number has increased sharply because of the agency's recent delegation of audit authority to agents on the front lines, he said.

He knew of two other churches, both critical of government policies, that had received similar letters, Owens said.

It's unclear how often the IRS raises questions about the tax-exempt status of churches.

While such action is rare, the IRS has at least once revoked the charitable designation of a church.

Shortly before the 1992 presidential election, a church in Binghamton, N.Y., ran advertisements against Bill Clinton's candidacy, and the tax agency ruled that the congregation could not retain its tax-exempt status because it had intervened in an election.

Bacon said he thought the IRS would eventually drop its case against All Saints.

"It is a social action church, but not a politically partisan church," he said.

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