July 17, 2018 •
IRS Exempts Certain Tax-Exempt Organizations From Reporting Contributor Info
On July 16, the U.S. Treasury Department and the IRS announced certain tax-exempt organizations will no longer be required to report the names and addresses of contributors on their annual reports.
This exemption from reporting will apply to tax-exempt organizations generally not receiving tax-deductible contributions, such as labor unions, volunteer fire departments, issue-advocacy groups, local chambers of commerce, veterans’ groups, and community service clubs, according to the department’s press release.
These organizations are still required to continue to collect and keep the donor information and to make it available to the IRS upon its request.
This change does not affect the information required to be reported by charities primarily receiving tax-deductible contributions, such as 501(c)(3) organizations, certain nonexempt private foundations, or 527 political organizations.
The Treasury Department and IRS gave three primary reasons for the change: the IRS makes no systematic use of this information collected by these organizations; the new policy will reduce the risk of inadvertent disclosure or misuse of confidential information; and the new policy saves both private and government resources.
The revised reporting requirements apply to information on returns for taxable years ending on or after December 31, 2018 and becoming due on or after May 15, 2019.
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