On May 26, 2020, the IRS released final regulation T.D. 9898, which updates the information reporting rules for exempt organizations under Internal Revenue Code (IRC) Section 6033. These final regulations adopt, with minimal changes, proposed regulation REG-102508-16 and provide that organizations other than those exempt under Section 501(c)(3) and Section 527 are no longer required to include identifying information such as names and address of donors when completing their Schedule B. Organizations such as those exempt under Section 501(c)(4), (6), or (7) are only required to list amounts on the Schedule. As a result, the Schedule B for such organizations would mirror the public inspection copy.

It is important to note that while the requirement for listing donor names and address has been lifted, organizations will still be required to complete Schedule B. The regulations are effective as of May 28, 2020, and organizations may choose to apply the final rules to returns filed after Sept. 6, 2019.

Organizations that are exempt under Section 501(c)(3) and Section 527 will still be required to follow the old rules and report names and addresses for all contributors when submitting Schedule B as part of a complete Form 990 filing to the IRS. However, the identifying information such as names and address should continue to be excluded from the public inspection copy, as this information is not open to the public. 

After considering the 8,387 written and electronic comments that were received, the Treasury and the IRS included in the final regulations a modification to indicate that states are free to require reporting of donor information to the state.

The final regulations do not affect private foundations. These organizations should continue to report identifying information of contributors on Schedule B when submitting their complete annual filings to the IRS, as well as in all public inspection copies.

What does CohnReznick think?

Contact

Lori Rothe Yokobosky, CPA, Partner, Exempt Organizations Tax Services Practice Leader

973.403.6940

_{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 legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. 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 partners, 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.}