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

IRS says it will no longer penalize houses of worship for endorsing political candidates during religious services, as long as it’s framed as part of religious expression.

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.