http://www.cbsnews.com/stories/2006/09/16/national/main2015503.shtml

AP) The Internal Revenue Service has ordered a prominent liberal
church to turn over documents and e-mails it produced during the 2004
election year that contain references to political candidates.

The IRS is investigating whether All Saints Episcopal Church in
Pasadena violated the federal tax code when its former rector, Rev.
George F. Regas, delivered an anti-war sermon on the eve of the last
presidential election.

Tax-exempt organizations are barred from intervening in political
campaigns and elections, and the church could lose its tax-exempt status.


...

"There is a lot at stake here," Bacon said. "If the IRS prevails, it
will have a chilling effect on the practice of religion in America."

An IRS spokesperson declined comment on the investigation.

In a sermon two days before the 2004 election, Regas did not urge
parishioners to support President Bush or challenger John Kerry but
was critical of the Iraq war and Bush's tax cuts, Bacon said in an
interview last November when the investigation was announced.

"He explicitly said, 'I am not telling you how to vote.' That is the
golden boundary we did not cross," he said.

All Saints has a long history of social activism, dating back to World
War II, when its rector spoke out against the internment of Japanese
Americans. Regas, who headed the church for 28 years before retiring
in 1995, was well-known for opposing the Vietnam War, championing
female clergy and supporting gays and lesbians in the church.








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