IRS Ends Investigation of Los Angeles Church Over Politicking Charges

The Internal Revenue Service has ended a two-year investigation into the All Saints Episcopal Church in Los Angeles but said it still believes an anti-war speech from the church’s pastor illegally tried to influence the 2004 presidential election, reports the Los Angeles Times.

Noting that apparent contradiction, The Rev. J. Edwin Bacon Jr. demanded that the IRS clarify its position and also asked for a letter of apology for threatening to revoke the church’s tax-exempt status. The investigation has so far cost the parish $200,000, he says.

The church also has asked the Treasury Department, which oversees the IRS, to investigate allegations that officials from the Justice Department had become involved in the matter, the newspaper said. Church officials said it was unusual for the Justice Department to be involved and that they were concerned that that was a sign the investigation was politically motivated.

The IRS denied that the investigation was politically motivated and said that it will continue to work with charities to help them understand what the guidelines are for political activity.

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