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.
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 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.
Press ReleaseCohnReznick’s Yokobosky named to NJBIZ 2022 Best 50 Women in Business ListCohnReznick Partner and Exempt Organizations Tax Services Leader Yokobosky was named by NJBIZ as one of its Best 50 Women in Business for 2022.
InsightDeferred compensation for tax-exempt organizations: Tax and 990 reporting issues to considerLori Rothe Yokobosky, Laura KielczewskiLearn about common tax and Form 990 reporting issues associated with nonqualified deferred compensation arrangements.
On-demandExempt organizations challenges and concerns during the pandemicJoin members of CohnReznick’s Exempt Organizations Tax Services group and the non-profit legal counsel of Perlman & Perlman as we walk through a comprehensive review of these challenges, along with other topics to help non-profits make sense of some of the more complicated requirements.
InsightQualified emergency financial aid grants for student COVID-19 relief are nontaxableLori Rothe Yokobosky, Laura KielczewskiCertain funds awarded to help students with COVID-19-related expenses are excluded from their gross income. Read about impacts to credits, reporting, and more.