Churches - Tax Exemption

A church is not required to file an application for exemption, but rather has exemption on the basis of being a church.  The activities of the church are presumed to be exempt activities.  It is possible for a church to lose its tax exemption, though it rarely happens.  Typically, the loss of exemption has resulted when the IRS determined that the organization was, in fact, not a church.  Churches also theoretically could lose their exempt status if they engage in too much political activity, such as the endorsement of a candidate from the pulpit.  In reality, this has yet to occur.