The IRS proposed regulations to scrap a donor-disclosure requirement for certain nonprofit groups, a response to a federal judge saying in July that the agency’s previous attempt to do so didn’t follow the rules.
Judge Brian Morris of the U.S. District Court for the District of Montana said the IRS should have followed notice-and-comment requirements when changing the donor-disclosure requirement in 2018 guidance.
The IRS said its Sept. 6 proposed regulations (REG-102508-16) “provide the opportunity for notice and comment.” The rules apply to organizations exempt under tax code Section 501(c), except for 501(c)(3) charities and Section ...