States to Weigh Entering Charity Info-Sharing Agreement With IRS

The sharing of charity information between the IRS and states potentially opens doors for better enforcement, but the IRS’s privacy and confidentiality requirements are a historically proven obstacle for states.

The agency published final rules expanding its ability to share exempt organization information with “appropriate State officers” last week, more than a decade after its 2011 proposal.

The sharing of information between the IRS and state charity officials gives states the tools to better enforce the rules for charity organizations, an area that has gotten less attention from the IRS over the years, current and former state government employees said. ...