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April 29, 2016

House GOP Bill Would Eliminate Donor Disclosure to IRS

Congressional Republicans advanced legislation Thursday that would end the requirement that nonprofits identify all donors of $5,000 or more in Internal Revenue Service filings, The Wall Street Journal reports. The House Ways and Means Committee approved Republican Rep. Peter Roskam’s bill on a 23-15 party-line vote.

While donor data is, by law, supposed to be redacted from publicly available versions of nonprofits’ tax forms, the IRS has acknowledged inadvertently releasing such information in some instances, including that of conservative groups. “The IRS has demonstrated inability to hold confidential information close, and if it’s not necessary for tax administration, then let’s mitigate this problem and not require organizations to submit it,” said Mr. Roskam.

The bill would also restrict disclosure to state charity regulators. A federal judge granted an injunction last week barring California officials from securing donor lists from an advocacy group associated with conservative billionaires Charles and David Koch.