Section 501(c)(4) and Other Tax-Exempt Entities May Have to Report Names and Addresses of Contributors for 2018
By Renee Foshee, JD, LL.M., CPA
Tax-exempt entities are generally required to report contributions of more than $5,000 ($1,000 for certain organizations) on Schedule B of Form 990. Schedule B is not subject to public disclosure requirements.
Last summer, the IRS published Revenue Procedure 2018-38, which authorized tax-exempt organizations to omit the names and addresses of contributors from Schedule B for tax years ending on or after Dec. 31, 2018. The rule change does not, or did not, apply to 501(c)(3) charitable organizations and 527 groups that must continue to report names and addresses of contributors.
A federal court has struck down Rev. Proc. 2018-38 because the IRS failed to follow proper notice and comment procedures that are required by the Administrative Procedure Act. (Order, Bullock v. IRS, CV-18-103-GF-BMM, D. Montana, July 30, 2019.)
Some organizations may have already filed Form 990 for tax year 2018. Rev. Proc. 2018-38 was effective for returns due on or after May 15, 2019.
The IRS has not yet issued further guidance on this issue for organizations that were subject to the Rev. Proc.