1. Was Liberty City Church a 501(c)(3)?
2. If a church is not a 501(c)(3), what tax exempt status do they have?
If the IRS is investigating, it probably WAS a 501(c)(3) but I wouldn't have any idea. I didn't write their application to the IRS. If they did, it is their own fault.
Any non-profit religious organization is automatically tax-exempt. The key is when they file with their state's Secretary of State, they need to file as a "non-profit religious corporation". This will also require a "Statement of Faith" and by-laws. The secret is to do it right the first time. No one offers this information, because it takes money away from lawyers and the IRS.