Hice campaign comments on radio may violate IRS rules

Radio talk show host Jody Hice went on air this week to talk about his congressional campaign, telling his audience “we really, really ask for your prayer as we come through these last several days for that congressional run.”

The Jody Hice Show is produced by his tax-exempt charity, LFR Ministries, and federal law prohibits such organizations from getting involved in political campaigns. So did Hice break the law Tuesday when he made those comments?

Yes, says Marcus Owens, a Washington-based attorney who was director of the Internal Revenue Service’s exempt organizations division from 1990 to 2000.

“He didn’t ask for God to bless all the candidates. He asked for people to pray for him,” said Owens, who listened to a recording of Hice’s comments at the request of The Atlanta Journal-Constitution. “While he didn’t say ‘vote for,’ he endorsed himself, if you will. He is certainly giving himself exposure that the other candidates don’t have -- and exposure that is favorable to his candidacy.”

The IRS can revoke the tax-exempt status of organizations that violate this law and fine them, Owens said.

An IRS spokesman declined to comment for this article, citing his agency’s privacy policies. But he also cited the federal law that prohibits tax-exempt organizations “from directly or indirectly participating in, or intervening in” political campaigns.

Hice denied he or LFR, which stands for Let Freedom Ring, has violated the law.

“Let Freedom Ring always has been, and will always be, in compliance with the tax code,” Hice said in a statement e-mailed to the AJC. “LFR will, of course, continue to be in compliance.”

Hice said his nonprofit organization and WRAF Toccoa Falls Radio agreed before his political campaign began to stop broadcasting his program in the 7th Congressional District during the duration of his campaign. Bryan Race, manager of the nonprofit radio station, confirmed the broadcast has been suspended on 90.9 FM and 92.1 FM, which reach into the district.

But Hice's program is also carried on the Christian Satellite Network. The network, which is part of another tax-exempt organization, says on its website that it includes radio stations across the country and in Georgia's 7th District, including 88.1 FM in Buford and 90.5 FM in Snellville. People can also listen to Hice's show live on the network's website, www.csnradio.com . His shows are archived on LRF's website, www.lfrministries.com Mike Stocklin, chief executive officer of the Christian Satellite Network, said he was unaware of Hice's on-air comments about his candidacy until the AJC informed him about it Friday. He said he planned to look into the matter.

“If someone were to ask -- who is running against him -- for time on the radio network, we would be glad to consider that and probably to grant that,” Stocklin said. “We are not advocating anyone’s candidacy -- as you can imagine -- for anything.”

Hice is locked in the Aug. 10 Republican primary runoff with Rob Woodall for Rep. John Linder's seat. A Republican, Linder is retiring after serving 18 years in the solidly conservative district. The district includes most of Gwinnett County, parts of Forsyth and Newton counties, and all of Barrow and Walton counties. The winner of the GOP runoff will face Democrat Doug Heckman in the Nov. 2 election.

State records, meanwhile, list Hice as the registered agent and chief executive officer of LFR Ministries. LFR’s Web site says it seeks to inform the public about issues that “threaten our nation’s Judeo-Christian values and foundation” while engaging in “America’s culture war” concerning constitutional and religious liberties.

On his program, Hice talks about what he calls America’s “culture crisis,” he bemoans what he sees as attacks on constitutional rights and he accuses President Barack Obama of trying to sabotage a federal ban on gay marriage and minimize religion in America.

In his Tuesday broadcast, Hice acknowledged that he had been “advised basically not to speak about our congressional race very much.” But Hice proceeded to talk about his second-place finish in the July 20 GOP primary behind Woodall.

“We are very, very honored to be in this role and to be in this position at this point,” he said. “And I say that to you really as a matter of prayer because I know many of you have been praying for us as we have been going through this congressional race. And I want you know where we are. Aug. 10 is just around the corner. And we really, really ask for your prayer as we come through these last several days before that congressional run.”

Hice drew headlines in 2008 when he sought to pick a fight with the IRS. Speaking from his pulpit at Bethlehem First Baptist Church in Barrow County, he urged his congregation to vote for John McCain for president over Barack Obama. He did that despite IRS regulations that say clergy can risk the tax-exempt status of their churches by making such public endorsements. Hice said the IRS backed down, though the IRS regulations are still in effect. Hice resigned as pastor this year to spend more time on his radio program and on speaking engagements, his campaign said.