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 agency's agreement in a court filing formally reverses a decades-old provision of the tax code, but the motion would need to be approved by a judge.

U.S. President Donald Trump on Wednesday welcomed the Internal Revenue Service's decision that houses of worship could endorse political candidates to their congregations without risking losing their status as tax-exempt nonprofits.