September 27, 2018 •
US Senate Joint Resolution Seeks to Reverse IRS Disclosure Exemption for Certain Tax-Exempt Organizations
On September 24, U.S. Senators Jon Tester and Ron Wyden introduced a resolution to reverse a U.S. Treasury Department’s decision limiting IRS disclosure requirements of certain tax-exempt organizations engaging in political activities. On July 16, the U.S. Treasury Department and […]
On September 24, U.S. Senators Jon Tester and Ron Wyden introduced a resolution to reverse a U.S. Treasury Department’s decision limiting IRS disclosure requirements of certain tax-exempt organizations engaging in political activities.
On July 16, the U.S. Treasury Department and the IRS announced certain tax-exempt organizations are no longer required to report the names and addresses of contributors on their annual reports.
This exemption from reporting applies to tax-exempt organizations generally not receiving tax-deductible contributions, such as the National Rifle Association, labor unions, volunteer fire departments, issue-advocacy groups, local chambers of commerce, veterans’ groups, and community service clubs. 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 exemption 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.
Senate Joint Resolution 64, The Spotlight Act, would overturn the exemption and require disclosure to the IRS of the names and information of donors who contribute more than $5,000.
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