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Congressman Diane Black

Representing the 6th District of Tennessee

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Roskam, Black Introduce Legislation to Ease Reporting for Non-profits

February 6, 2018
Press Release

Washington, D.C. — Representatives Peter Roskam (R-IL) and Diane Black (R-TN) introduced H.R. 4916, the Preventing IRS Abuse and Protecting Free Speech Act, to prohibit the Internal Revenue Service (IRS) from collecting the identity of donors who contribute to tax-exempt organizations and eliminate a burdensome and invasive reporting requirement for non-profit organizations. Presently, the IRS does not use the Schedule B of the Form 990 for tax administration, but still requires organizations to submit to this burdensome reporting requirement. 

"The IRS targeting of certain groups is an egregious violation of privacy and of the First Amendment and the accessing of Schedule B forms by bad actors within the agency has been a key component of that targeting,” said Rep. Roskam. “The IRS has confirmed that they have no need for the Schedule B, so H.R. 4916 rectifies that and limits the IRS’ ability to target organizations based on improper criteria or improperly released information, protecting the personal information of donors,” he continued.

The IRS has demonstrated in the past that it does not adequately protect the information on Schedule B forms and has improperly accessed and leaked Schedule B information. H.R. 4916 will protect the personal information of donors and limit the IRS’ ability to target organizations based on improper criteria, or improperly released information. 

“The federal government has no business bullying tax-exempt organizations. This bill is about protecting Americans’ right to the freedom of speech – regardless of their political views – and holding the IRS accountable for its blatant misuse of confidential information. Targeting taxpayers for their beliefs is abominable, and it is apparent that we need to ensure the opportunity to do so is never possible,” said Rep. Black. “I am proud to work with Rep. Roskam to fight for the protection of privacy and freedom of speech we hold dear in America.”

BACKGROUND:
Current law requires 501(c) non-profit organizations to report information on donors who give $5,000 or more in a calendar year to the IRS.  This information is reported on Schedule B of the Form 990; under this legislation, a tax-exempt organization would have to report information only on donors who contribute $5,000 or more during the current tax year and who are either an officer or director of the organization or one of the five highest paid employees.