Liberal Church May Lose Funds Over Sermon
Tuesday November 8, 2005 5:16 AM

LOS ANGELES (AP) - The Internal Revenue Service has warned a prominent liberal church that it could lose its tax-exempt status because of an anti-war sermon a guest preacher gave on the eve of the 2004 presidential election, according to church officials.

The Rev. George F. Regas did not urge parishioners at All Saints Episcopal Church to support either President Bush or John Kerry, but he was critical of the Iraq war and Bush's tax cuts.
The IRS warned the church in June that its tax-exempt status was in jeopardy because such organizations are prohibited from intervening in political campaigns and elections.
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