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Treasury, IRS Relieves Regulatory Burden for Certain Tax-Exempt Organizations, Protects Personal Donor Information

AAFCPAs would like to make clients aware that the Treasury Department and IRS announced on July 16th, 2018 changes to donor disclosure requirements for certain tax-exempt organizations. This new revenue procedure does not affect the statutory reporting requirements that apply to tax-exempt groups organized under section 501(c)(3) or section 527, but it relieves other tax-exempt organizations—groups that do not generally receive tax deductible contributions—of a reporting requirement.

The affected tax-exempt organizations will no longer have to report personally-identifiable information about their donors on Schedule B of their Form 990s.  The change takes effect with the Form 990 for taxable years ending on or after December 31, 2018.

The affected tax-exempt organizations are still required to collect and maintain the names and addresses of the donors in their internal records, and the IRS may request the information if it is needed for tax administration.

The IRS reports that the new policy will relieve thousands of organizations of an unnecessary regulatory burden, while better protecting sensitive taxpayer information and ensuring appropriate transparency. The IRS guidance is available here. >>

If you have any questions, please contact: Jeanie Gorlovsky-Schepp, CPA at jgorlovsky-schepp@nullaafcpa.com, 774.512.4000; John Buckley, CPA, CGMA at jbuckley@nullaafcpa.com, 774.512.4039; or your AAFCPAs Partner.