Did the IRS Open the Door for Tax Deductible Political Contributions? Johnson Amendment Invalidated for Churches
A new Consent Judgment lets churches engage in political speech during services without losing tax-exempt status, marking a major shift in IRS policy under the Johnson Amendment.
By David Donnelly, CPA-Houston
For decades, the Johnson Amendment prohibited churches from participating in political speech. Also, there is currently no tax deduction allowed for contributions to political campaigns.
Did this just change?
On July 7, 2025, Billy Long, as Commissioner of the IRS, entered into a Consent Judgment that allows any church to engage in political speech “through its customary channels of communication.”
This motion prohibits the IRS “from enforcing the Johnson Amendment against plaintiff churches based on speech by a house of worship to its congregation in connection with religious services through its customary channels of communication on matters of faith, concerning electoral politics viewed through the lens of religious faith.”
The Johnson Amendment states that 501(c)(3) organizations can lose their nonprofit status if they participate in any political campaign on behalf or in opposition to any candidate for public office. This Consent Judgment invalidates the Johnson Amendment in regard to churches.
Since contributions to churches are tax deductible, and churches can now communicate political messages, this change in IRS policy seems to open the door for tax-deductible contributions for political purposes.
This change in IRS policy was made via a Consent Judgment and therefore did require the comments period required by the Administrative Procedures Act.
This is a sudden change in policy; the IRS website was updated on May 20, 2025, states: Under the Internal Revenue Code, all Section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.
The effects of this court case, and the responses to it from the public, the media and the members of Congress will be interesting to follow in the next few months.
For further information:
The formal name of the court case is National Religious Broadcasters, et al. v. Billy Long, in his official capacity as Commissioner of the Internal Revenue Service.
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