Daily Tax Report ®

IRS Nonprofit Disclosure Rollback Struck Down by Court

July 31, 2019, 3:01 AM

The IRS failed to follow the proper procedure when scrapping donor disclosure requirements for certain nonprofit organizations, a federal judge ruled.

The Trump administration in July 2018 did away with long-standing requirements for certain tax-exempt organizations to include the names and addresses of their financial backers on tax forms. The change (Rev. Proc. 2018-38) drew criticism from Democrats, who said the policy shift would draw dark money to politically active nonprofits.

Opponents of the change, led by Montana Gov. Steve Bullock (D), prevailed in court July 30 when Judge Brian Morris of the U.S. District...

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