Colorado: Grace Church and St. Stephen's Parish see hope in IRS decision

OCTOBER 2, 2008
By ANTHONY LANE

The Rev. Don Armstrong tells nearly 100 congregants gathered Sunday morning at Grace Church and St. Stephen's Parish that he won't tempt the Internal Revenue Service's wrath by making political endorsements.

He then draws quiet laughter when he comments, with apparent sarcasm, on the lengths to which he's gone to keep his political views secret.

Armstrong, of course, made political and legal noise last year when he led Grace's break from the U.S. Episcopal Church to align with an African bishop known for his anti-homosexual views. Since then, Armstrong has stayed firmly planted inside Grace's walls while facing investigation for possible theft and tax fraud.

Grace's division forced many church members into exile and triggered an ongoing legal battle about who owns the historic church property. Interestingly, exiled members are now drawing comfort from the same government agency Armstrong mentions in jest.

A letter from a case advocate within the Taxpayer Advocate Service of the IRS informs Grace members faithful to the U.S. church and the Bishop and Diocese of Colorado that they can continue using the same taxpayer identification number used by the church since at least 1965. the rest