IRS Rule Change for Nonprofits Comments Due

The U.S. Treasury Department and the Internal Revenue Service published proposed regulations in September that would permit, but not require, charitable nonprofits to file a new, separate information return with the IRS (in addition to the Form 990) by February 28 every year to substantiate contributions of more than $250 in value. The new informational tax return would require the nonprofit to collect the donor’s name, address, and Social Security number or other taxpayer identification number. Nonprofits taking this option would also be required by that date to provide a copy to each donor listed.

The process could impose significant costs and burdens on nonprofit organizations. By requiring nonprofit organizations to collect social security numbers, the IRS will be opening organizations – and their board members as fiduciaries – to significant liability and burden nonprofit organizations to invest in cybersecurity measures.

Comments on the Proposed Rule by as many NH nonprofits are encouraged. Draft comments are available for your reference and should be sent to Regulations.gov by Wednesday December 16th.

Post date: December 15, 2015
Topics: National News

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