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1 1 (August 1, 2019)

handle is hein.crs/govbapx0001 and id is 1 raw text is: Congressional _______ N. esearch Service htforming the Iegislattve debate since 1914 - Nonprofit Donor Information Disclosure Updated August 1, 2019 UPDATE: On July 30, 2019, the United States District Court for the District of Montana set- aside as unlawful IRS Revenue Procedure 2018-38, which is the subject of this post. The Revenue Procedure would have eliminated the requirement that certain tax-exempt organizations disclose the names and addresses of their substantial donors in annual reports to the IRS. If the court decision stands and the law remains unchanged, the IRS would need to go through the Administrative Procedure Act's notice-and-comment rulemaking process in order to implement Revenue Procedure 2018-38's donor disclosure policy changes. The original post from April 14, 2018 is below. In July 2018, the Internal Revenue Service (IRS) announced that certain organizations that are exempt from paying federal income tax (tax-exempt organizations or EOs) under the Internal Revenue Code (IRC), including social welfare organizations, labor unions, and trade associations, will no longer be required to disclose the names and addresses of their substantial donors in Schedule B of their annual Form 990 returns to the IRS. Charitable tax-exempt organizations described in IRC Section 501(c)(3), which are statutorily required to disclose certain donor information, were not impacted by the July 2018 policy. The IRS noted several reasons for making the change, including reducing administrative burdens and protecting sensitive, nonpublic personal information. In opposition, some have argued that the IRS' policy change will reduce transparency over the funding sources of EOs' political activities and make it more difficult for the IRS to enforce tax laws. At least one state has filed a lawsuit seeking to have the new policy set aside, alleging that the IRS implemented the policy in violation of the Administrative Procedure Act (APA). This Sidebar will first provide background on the statute and regulations regarding EOs' disclosure of contributor information. Next, the Sidebar will discuss the justifications of and reactions to the new policy, including the views of proponents and opponents of the new policy. The Sidebar will then discuss the litigation Montana has filed against the policy. Finally, the Sidebar will provide considerations for Congress. Congressional Research Service https://crsreports.congress.gov LSB10187 CRS Legal Sidebar Prepared for Members and Committees of Congress

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