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Monday, July 23, 2018

IRS ACTS TO REDUCE INFORMATION PROVIDED TO IT FOR EXEMPT ORGANIZATIONS

I have previously noted and complained about the relentless expansion of information reporting required to the IRS. Like an unexpected cool breeze on a hot summer day, an unexpected reduction in such reporting has been promulgated for many tax-exempt organizations. This is favorable since it reduces the compliance burden on taxpayers, protects the privacy of donors, and limits the ability of the IRS to injure donors by inadvertently disclosing donor information (as has happened in the past) or inappropriately targeting groups and individuals for disparate treatment when their politics is not in accord with the current ruling party (i.e., the inappropriate screening of conservative groups).

The Treasury Department and the IRS have announced that they will no longer require many tax-exempt organizations to file personally-identifiable information about their donors as part of their annual tax return (Forms 990). This will apply to all tax-exempt groups under Code §501(c), other than those organized under Code §501(c)(3) or Code §527. The reporting left in place was deemed necessary so that the IRS can confirm charitable deductions claimed by owners were actually made.

Organizations covered by the new exclusion include labor unions, volunteer fire departments, issue-advocacy groups, local chambers of commerce, veterans groups, and community service clubs.

Thumbs up to the IRS and Treasury for this reporting relief.

Press Release, July 16, 2018

GOT HOMESTEAD? - Rubin on Florida Homestead

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