Ad Links Buy a link » Gillian Flaccus, The Associated Press PASADENA, CALIF. - A liberal church that has been threatened with the loss of its tax-exempt status over an anti-war sermon days before the 2004 presidential election said Thursday that it will fight an IRS order to turn over documents on the matter.

"We're going to put it in their court and in a court of law so that we can get an adjudication to some very fundamental issues here that we see as an intolerable infringement of rights," said Bob Long, senior warden of All Saints Church.

He said the church's 26-member vestry voted unanimously to resist IRS demands for documents and an interview with the congregation's rector by the end of the month.

The church's action sets up a high-profile confrontation between the church and the IRS, which must decide whether to ask for a hearing before a judge, who would then decide on the validity of the agency's demands.

"We recognize the constitutional rights of freedom of speech and religion," Lemons said. "But there is no constitutional right to be exempt from federal taxation."

Religious leaders on the right and left have expressed fear that the dispute could make it more difficult for them to speak out on moral issues such as same-sex marriage and abortion during the midterm election campaign.

Under federal tax law, church officials can legally discuss politics, but to retain tax-exempt status, they cannot endorse candidates or parties.

The dispute at the 3,500-member Episcopal church centers on a sermon delivered by a guest priest. Though he did not endorse a candidate, he said Jesus would condemn the Iraq war and Bush's doctrine of pre-emptive war.

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