Last week’s announcement by the IRS that it would no longer require most nonprofit organizations to provide the agency with the names and addresses of their donors is remarkable for two reasons: First, for the rare sight of the IRS voluntarily giving up some power and, second, for the reaction of the progressive Left and left-wing media.
The decision to stop gathering some donor information seems, on the surface, like a no-brainer. First, the IRS neither used nor needed the information in its everyday operations. Because the new rule applies to nonprofit groups that do not get tax-deductible donations, including trade associations, issue groups such as the National Rifle Association and Greenpeace, and organizations such as volunteer fire departments, the information is not necessary to verify that taxpayers made tax-deductible contributions. (The IRS will still be able to demand donor information when necessary, such as for audits or criminal investigations).
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