Overview
Last night, the Treasury Department and the IRS issued Revenue Procedure 2018-38, providing that the IRS will no longer require organizations exempt from tax under section 501(a), other than section 501(c)(3) organizations, to report information about their contributors on Schedule B of their Forms 990 or 990-EZ. Organizations must continue to collect and keep donor information in their records and make it available to the IRS upon request. This change in donor reporting requirements is effective for tax years ending on or after December 31, 2018. It is particularly significant for organizations exempt under section 501(c)(4), which often engage in advocacy activities and may have donors who prefer anonymity. However, it does not affect reporting by charities exempt under section 501(c)(3) or section 527 organizations.