Christian Echoes National Ministry, Inc. v. United States

Christian Echoes National Ministry, Inc. (ministry) (plaintiff) was a nonprofit religious corporation organized in 1951 by Billy James Hargis, an ordained minister. The ministry produced weekly radio and television programs and various print publications. Hargis characterized the ministry’s mission as a battle against communism, socialism, and political liberalism. The ministry’s publications contained articles urging the public to react to and influence numerous issues, including certain legislative efforts. The publications also encouraged readers to work in politics at the precinct level and to advocate that the House Committee on Un-American Activities be retained and that the United States withdraw from the United Nations. In 1953, the United States Internal Revenue Service (IRS) (defendant) ruled that the ministry qualified as a tax-exempt religious and educational organization under § 501(c)(3) of the Internal Revenue Code. In 1962 and 1963, the IRS reexamined the ministry’s activities and recommended that the exemption be revoked because of the ministry’s involvement in political activities. The ministry paid the taxes assessed and filed an action for a refund. The district court ruled in favor of the ministry. The IRS appealed directly to the United States Supreme Court, which dismissed the appeal for lack of jurisdiction. On remand, the district court entered a new decree in favor of the ministry, and the IRS appealed.