Excerpt from the sermon that provoked the IRS
The agency still questions a Pasadena church's tax-exempt status after an antiwar speech before the 2004 election that some saw as politicking.
November 18, 2006

So what exactly did a priest say to get a Pasadena church in trouble with the IRS?

The federal agency has launched an investigation into the activities of All Saints Episcopal Church, asking whether a sermon by a former rector before the 2004 presidential campaign constituted campaigning. As tax-exempt organizations, churches are barred from campaigning for candidates.

The sermon, delivered Oct. 31, 2004, by the Rev. George F. Regas, was framed as a debate involving Jesus, President Bush and his Democratic challenger, Sen. John F. Kerry of Massachusetts.

In September, the church announced that it would not comply with an IRS summons demanding that All Saints turn over materials with political references, such as sermons and newsletters, produced during the 2004 election year. The current rector, the Rev. Ed Bacon, did not obey a summons that ordered him to testify before IRS investigators. the rest