IRS Finalizes Rule to Protect Citizen Privacy

May 28, 2020 | PUFP Staff

The Treasury Department and Internal Revenue Service have announced that a rule has been finalized that will eliminate Schedule B donor filing requirements for many nonprofit organizations.

Support for this rule was strong with nonprofit leaders and the supporters of those groups across the United States. During a public comment period in late 2019, people commenting in favor of the rule outnumbered opponents 2-1. In February of this year, the IRS held a hearing about the rule to give citizens the opportunity to speak about the proposal. Supporters significantly outnumbered the opposition at that hearing as well.

Previously, the IRS required nonprofit groups to report the names and addresses of certain donors in their annual tax forms. However, this information was often not necessary for the IRS to enforce tax code, and those private details about Americans and their constitutionally protected activities were at risk of being leaked or accidentally disclosed. Moving forward, only organizations that offer a tax deduction will be required by law to report their donors.

This decision is a win for American citizens and protects their right to support causes they believe in without fear of harassment or intimidation.