IRS Donor Disclosure Dispute Will Test Scope of Court Deference

A First Amendment challenge to an IRS regulation requiring nonprofits to disclose major donors will allow the Sixth Circuit to determine what level of deference to use in reviewing information disclosures required by the tax code.

IRC Section 6033(b)(5) requires nonprofits to disclose the names and addresses of their significant contributors—those who donate more than $5,000 or 2% of an organization’s support—to the Treasury Department on Form 990, the annual information return for tax-exempt organizations.

The Sixth Circuit will hear oral arguments Wednesday about whether the statute should be evaluated under deferential rational basis review or a more demanding exacting ...