IRS withdraws controversial proposal on documenting donations

Posted on: January 8, 2016

“The Internal Revenue Service announced Thursday that it has withdrawn a proposal that would have given nonprofits the option of substantiating charitable contribution deductions of $250 or more on behalf of donors,” writes Andy Segedin in Thursday’s (1/7) Nonprofit Times. “The amendment to the Income Tax Regulations would have placed organizations in the position of collecting donors’ tax information such as Social Security numbers—a concept panned by the likes of the National Council of Nonprofits and Independent Sector. ‘The Treasury Department and the IRS received a substantial number of public comments in response to the notice of proposed rulemaking,’ the IRS’ statement reads.… The IRS received roughly 38,000 comments on the amendment, a sizable amount considering comments regarding regulations tend not to reach the hundreds. The National Council of Nonprofits had rallied against the proposal … primarily on the grounds that it could facilitate scam artists seeking to solicit private information. Tim Delaney, president and CEO of the national council, said on Thursday that the organization was delighted by the news and that the withdrawal ‘proves the power of nonprofit advocacy.’ ” The League of American Orchestras was very active regarding this proposal. Read the League’s comments to the IRS on behalf of orchestras here.

Posted January 8, 2016