The IRS has issued new guidance regarding tax-exempt groups’ obligation to provide the IRS with contributors’ identifying information. The new rule change will allow certain filers of Form 990 and 990-EZ to withhold donors’ identifying information on Schedule B.
Who Is It Affecting?
The rule change, Revenue Procedure 2018-38, allows annual return filers (excluding 501(c)(3) and 527 organizations), to file Schedule B without disclosing the identifying information. These filers are still required to report the amounts and types of contributions on Schedule B. Groups that this will affect include labor unions, chambers of commerce, associations, and various other not-for-profits. All other reporting requirements have stayed the same.
It is important to note that organizations who are no longer required to provide the identifying information are still required to track that information and provide it to the IRS if it is requested.
Who Is Not Affected?
All section 501(c)(3) and 527 organizations will still be required to include the identifying information of their contributors and the current regulations regarding disclosure of information will continue to apply. Contributor information filed by a public charity will continue to remain private, and contributor information filed by a private foundation or a 527 political organization will be accessible to the public.
When Does It Go Into Effect?
The new rule goes into effect this year and covers all returns ending on or after December 31, 2018. The revised reporting requirements will generally apply to returns that become due on or after May 15, 2019.
Please contact your accountant with any question or concerns.
