Burden Shifts to States After IRS Eases Donor-Disclosure Rules

May 28, 2020, 8:46 AM UTC

It’s now on states to seek more information about nonprofit donors if they want it, after the IRS rolled back disclosure requirements.

The IRS nixed a requirement that organizations exempt under tax code Section 501(c), except for 501(c)(3) charities and Section 527 political organizations, include names and addresses of donors who contribute $5,000 or more on tax forms they send to the agency. The final IRS rules (T.D. 9898), issued Tuesday, left it up to states to take a different path.

“To the extent that any state determines that the burdens of collecting and maintaining ...

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