Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 3, 1993 TAG: 9304030069
SECTION: VIRGINIA PAGE: B-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: LYNCHBURG LENGTH: Medium
FALWELL WILL PAY TAXES FOR TV SHOW
The Rev. Jerry Falwell's Old Time Gospel Hour has agreed to pay $50,000 in back taxes to the Internal Revenue Service for conducting improper political activities in 1986 and 1987.The settlement concludes a four-year IRS investigation of organizations affiliated with Falwell. The IRS found that the Old Time Gospel Hour, the broadcast ministry of Falwell's Thomas Road Baptist Church, raised funds for political purposes.
The ministry's tax-exempt status for 1986 and 1987 was revoked. Falwell agreed to pay the $50,000 as a condition for reinstatement of tax-exempt status.
A statement signed by Falwell as part of the settlement said the organization would "change its organizational structure to ensure that no future political campaign intervention activities will occur."
The IRS in 1991 revoked the tax-exempt status of Liberty Federation, an educational organization that promoted conservative moral issues. The IRS found that the organization did not operate exclusively for religious and charitable purposes.
The Moral Majority, a political lobbying organization disbanded in 1989, agreed in 1991 to allow its tax-exempt status to lapse. Two other Falwell organizations, Liberty University and Liberty Broadcasting Network, were not cited for any violations.
People who contributed to the Old Time Gospel Hour in 1986 and 1987 and were unaware of the political activities will not be affected by the IRS findings, according to the statement.
"They won't even be notified," Falwell spokesman Mark DeMoss of Snellville, Ga., said in a telephone interview Friday.
DeMoss said he could not elaborate on the formal statement.
"We followed the requirement for disclosure as set forth in the closure agreement with the IRS," DeMoss said. "There were specified, agreed-upon sort of guidelines for public disclosure. We followed that and no more."
Falwell was out of his office and unavailable for comment, a spokeswoman said.