DOJ Report Finds Biden-Era IRS Selectively Enforced Tax Law Against Conservative Churches

WASHINGTON — A Department of Justice task force released a report on Thursday concluding that the Internal Revenue Service under the Biden administration selectively enforced federal tax law, targeting conservative Christian churches and nonprofits for investigation while ignoring similar political activities by liberal counterparts. The 566-page report, issued April 30, 2026, by the DOJ’s Task Force to Eradicate Anti-Christian Bias, alleges a “stark contrast” and a systemic double standard in how the IRS applied the Johnson Amendment. This 1954 tax code provision prohibits 501(c)(3) tax-exempt organizations, including churches, from endorsing or opposing political candidates. The task force was established following a directive from former President Donald Trump to examine potential federal discrimination against Christians. According to the report, the IRS initiated probes into churches that espoused traditional Christian teachings, arguing that such positions constituted de facto political support for Republican candidates. The investigation found that the agency “failed to apply the Johnson Amendment in a viewpoint-neutral manner, appearing to investigate Christians whose religious values aligned with conservative political views, while appearing to ignore open endorsements of liberal candidates at other churches.” The report details several specific instances to support its conclusions. In one case, a former IRS Director of Exempt Organizations, Stephen A. Martin, allegedly told a nonprofit that its “Bible teachings are typically affiliated with the [Republican] party and candidates,” and that this affiliation disqualified the organization from tax-exempt status under Section 501(c)(3). In another instance, the IRS assessed excise taxes on a church in Northern Virginia for alleged political expenditures following a sermon in which the pastor suggested the Republican Party platform aligned more closely with Biblical values than the Democratic platform. Historically, direct enforcement of the Johnson Amendment has been rare and sporadic, according to the Justice Department. However, the task force’s review found that under the previous administration, the IRS investigations were broad, seeking wide-ranging information on the finances and operations of the targeted churches, not just the content of sermons. This pattern, the report states, “raised serious concerns about the IRS attempting to regulate what certain pastors could say from the pulpit and chilled the speech of many other clergy.” For the organizations targeted, the investigative process itself often served as the penalty, regardless of the final outcome. The report noted that in several cases, including an inquiry into Grace Church, the IRS dropped its probe after the organization retained legal counsel. Robert Jeffress, pastor of First Baptist Church in Dallas, told reporters his church spent “hundreds of thousands of dollars” in legal fees during a similar IRS investigation. This financial burden and the threat of losing tax-exempt status created a significant deterrent for other faith leaders considering addressing social or political issues from the pulpit. The debate over the Johnson Amendment is not new. The Trump administration frequently called for its full repeal, arguing it unconstitutionally restricts the free speech of religious leaders. The IRS itself has acknowledged the legal complexities. In a court filing related to a proposed settlement last year, which was ultimately rejected by a federal judge in March 2026, the agency argued that interpreting the amendment to cover communications between a house of worship and its congregation would create “serious tension” with First Amendment religious freedom protections. Advocacy groups remain divided on the issue. Organizations like Alliance Defending Freedom have long challenged the law, while groups such as Americans United for Separation of Church and State have defended it, arguing that weakening the provision would transform houses of worship into political action committees and inject more untraceable money into elections. This DOJ report adds a new, politically charged dimension to the ongoing debate, shifting the focus from the law’s constitutionality to allegations of its discriminatory application by a federal agency. The findings assert that the Biden administration “generally tolerated religious beliefs that were privately held” but “zealously pursued actions to limit Christians’ ability to act in accordance with their faith.” While this report focuses on a specific political context, the underlying compliance issues are perennial for all 501(c)(3) organizations. In our experience, the line between permissible issue advocacy and prohibited political intervention is often blurry and subject to the interpretation of the sitting administration. Nonprofits, especially faith-based organizations, must understand that their activities can be scrutinized, and the political winds can shift enforcement priorities without any change to the underlying law. We advise clients to establish clear internal policies and provide regular training to board members and staff on what constitutes political campaign activity. Careful documentation and a proactive approach to compliance are the best defenses against costly and disruptive inquiries, regardless of their motivation. For organizations navigating these complex rules, the tax preparation and compliance services offered by C&S Finance Group LLC at csfinancegroup.com can provide critical guidance and support. The release of the task force’s findings is expected to intensify congressional oversight of the IRS and fuel renewed legislative efforts to repeal or reform the Johnson Amendment. It may also embolden religious organizations to mount new legal challenges against the provision, citing the report as evidence of biased and unconstitutional enforcement.