Nonprofits are expressing concern about proposed regulations from the Internal Revenue Service and the Treasury Department that could give charities the option of providing Social Security numbers of donors who contribute more than $250 to their organizations.
The proposed regulations would allow, 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, called a “donee report,” would require the nonprofit to collect the donor’s name, address, and Social Security number or other taxpayer identification number. Nonprofits that use the option would also be required by that date to provide a copy to each donor listed (but only the portion that contains “information related to that donor”). The IRS is accepting public comments on the proposed rule change through December 16.
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