In court filings July 7, the IRS has largely backed down on a decades-old rule that barred churches from engaging in political activity.

The IRS said in a court filing that churches whose pastors endorse political candidates from the pulpit shouldn't lose their tax-exempt status.

Comparing it to a family discussion, the Internal Revenue Service agreed on Monday that pastors and other religious leaders can endorse political candidates to their congregation without threatening their tax-exempt status under a decades-old legislation called the Johnson Amendment.