News Release
For Immediate Release: 4.7.25
Contact: John Manning, media@firstliberty.org
Direct: 972-941-4453
IRS Closes Investigation of Church After Attorneys with First Liberty Institute Step In
IRS Investigation of Florida church highlights the need for the reform of the “Johnson Amendment.”
Palm Coast, FL—First Liberty Institute and attorneys at Jones Day announced that the IRS closed its investigation of New Way Church in Palm Coast, Florida. The IRS’s decision to close its investigation, first opened in 2024, comes after the church prayed for a local school board candidate during its church service in 2022.
“First Amendment rights don’t end when a pastor, church member or even a political candidate steps on the platform of a church,” said Jeremy Dys, Senior Counsel for First Liberty Institute. “We are pleased that the IRS not only closed its investigation, but affirmed that this church’s activities of praying for political candidates during its church service do not threaten its tax-exempt status.”
“The First Amendment protects the rights of all Americans to speak on matters of public concern, including elections and political candidates,” said John Gore, partner at Jones Day. “We are grateful that the IRS has recognized that this fundamental freedom applies when Americans come together in worship services.”
In 2022 a candidate for local school board visited New Way Church and during the service, addressed the congregation. After talking about the importance of her faith and reasons for seeking the position, the pastor prayed for her. In June of 2024, the IRS informed the church that it was conducting an investigation into alleged violations of the so-called Johnson Amendment—a provision of the IRS code the purports to prevent political involvement by nonprofit organizations, including churches. Attorneys with First Liberty and Jones Day responded to the IRS’ investigation asserting that the basis for its investigation was unconstitutional and an exercise in futility. Following a pre-examination conference call with the local IRS agents, the IRS elected to close the investigation, affirming that New Way’s activities—praying for a political candidate during a church service—continues to allow the church to be tax-exempt.
During the first Trump administration, President Trump directed his agencies to cease enforcement of the Johnson Amendment. Now, members of Congress, led by Sen. James Lankford (OK) and Congressman Mark Harris (NC), have introduced the Free Speech Fairness Act to remove the ability of the IRS to investigate churches like New Way for simply praying for political candidates for office.
“The Johnson Amendment violates this nation’s historic respect for the independence of its houses of worship by inviting the IRS to investigate churches for political advantage,” Dys said. “The Free Speech Fairness Act goes a long way to restoring this nation’s commitment to protecting our houses of worship and the religious liberty of its leaders.”
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About First Liberty Institute
First Liberty Institute is a non-profit public interest law firm and the largest legal organization in the nation dedicated exclusively to defending religious freedom for all Americans.
To arrange an interview, contact John Manning at media@firstliberty.org or by calling 972-941-4453.
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