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.

Since 1954, the IRS has banned nonprofits — including congregations — from participating in political campaigns. The agency now says political endorsements by churches should be allowed.

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