IRS Proposes Dangerous Donor Reporting Rule
The Internal Revenue Service (IRS) proposed a new rule in September that would allow charities to voluntarily report to the IRS contributions of more than $250. For donors reported to the IRS, the new rule would require the donor’s name, address, and Social Security number. Today, we filed this public comment:
The National Legal and Policy Center, a 501(c) (3) organization, opposes the proposed rule “Substantiation Requirement for Certain Contributions.”
It seems more than strange that the IRS would propose this rule in the wake of its illegal and Unconstitutional attempts to impede, delay and/or deny tax-exempt status to Tea Party and conservative groups. The proposed rule seems calculated to achieve the same result by opening donors to intimidation, harassment and vilification.
The voluntary nature of the proposed disclosure does not make it less dangerous. Should the IRS at some future time deem voluntary disclosure a “success,” it will no doubt propose mandatory disclosure.
Along with the failure of the Justice Department to criminally prosecute anyone for the IRS scandal, this proposal is clear evidence that the IRS has yet to be depoliticized. The proposal should be withdrawn.
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