IRS requests documents related to anti-war sermon at California church

September 18, 2006

(RNS) Officials at All Saints Church, a liberal Episcopal church in Pasadena, Calif., said Sunday (Sept. 17) they are considering whether to comply with a pair of summonses issued Friday by the Internal Revenue Service.

The church came under IRS scrutiny after the Rev. George Regas, the church's former rector, delivered a guest sermon on Oct. 31, 2004, called "If Jesus Debated Sen. Kerry and President Bush," in which he depicted Jesus addressing Bush.

Regas suggested Jesus would have said, "Mr. President, your doctrine of a pre-emptive war is a failed doctrine. Forcibly changing the regime of an enemy that posed no imminent threat has led to disaster."

Coming just two days before the 2004 presidential election, the sermon prompted an IRS investigation even though it did not endorse a particular candidate. IRS regulations prohibit nonprofits, including churches, from participating in any political campaign on behalf of one candidate.

In June 2005, the IRS sent a letter to All Saints stating that "a reasonable belief exists that you may not be a tax-exempt church."

One of the new IRS summonses demanded the church produce all electronic and oral communication materials with political references created between Jan. 1, 2004 and Nov. 2, 2004. The other demanded that the church's pastor, the Rev. Ed Bacon, appear at an IRS hearing in October.

In his sermon on Sunday, Bacon said there is no objective basis for the IRS to have a reasonable belief that All Saints Church has participated in campaign intervention.

"We would argue that this entire case has been an intrusion, in fact an attack upon this church's first amendment rights to the exercise of freedom of religion and freedom of speech," he said.

After his sermon, Bacon received a three-minute standing ovation from the congregation.

"It was one of the weirdest things I've ever seen," said Keith Holeman, director of communications at All Saints Church. "We've had standing ovations occasionally at church, but it's rare. It was very heartfelt. The congregation is very much in support of Ed and whatever decision he will make."

IRS officials declined to comment on the matter.

-- Chansin Bird