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All Saints challenges IRS 'vagueness' IRS won't say how sermon violated rules

The large and liberal All Saints Episcopal Church in Pasadena, California—after squirming on the hook for two years as the Internal Revenue Service examined the content of a preelection sermon—has been tossed back into the religious stream because its “political intervention” favoring one candidate “appears to be a one-time occurrence.” The church will not lose its tax-exemption over the October 31, 2004, sermon.