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House-Supported Bill Prevents IRS Donor Identity Collection, Eliminates Schedule B


6/17/16

Synopsis
 
On June 14, 2016, the House passed legislation that would prevent the IRS from requiring tax-exempt organizations to disclose the names of donors on Form 990. The bill would effectively eliminate Schedule B from Form 990, which most 501(c) organizations are required to file under current law in order to report the names of individuals who contribute more than $5,000. Under the bill, only donations of more than $5,000 from officers, directors, and certain employees would have to be disclosed.
 
Introduced by House Ways and Means Oversight Subcommittee, proponents of the bill contend the legislation prevents the IRS from singling out certain organizations for heightened scrutiny, safeguards taxpayer privacy, and increases IRS accountability in the wake of the broader political-targeting scandal. Critics assert that the bill eases the only real protection against tax-exempt 501(c) organizations illegally using foreign money in political elections and promotes the secrecy of special interests.
 
What Does CohnReznick Think?
With the upcoming presidential election, there is much commotion regarding disclosure of contributions to various charities and we believe this bill may face some challenges in passing the Senate and becoming law.
 

Contact
 
For more information, please contact Kelly Frank, partner and Not-for-Profit and Education Industry Practice leader, at 973-403-7999 or kelly.frank@cohnreznick.com, or Thomas Lanning, partner, at 646-834-4108 or thomas.lanning@cohnreznick.com.
 
To learn more about CohnReznick’s Not-for-Profit and Education Industry Practice, visit our webpage.

Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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