Form 990 Changes for E-Filing, Public Access, and Notice Before Auto-Revocation

As most nonprofit leaders recognize, tax-exempt organizations must file an annual IRS Form 990. Until now, only very large or very small nonprofits were required to e-file. In addition, a nonprofit could lose its tax-exempt status without prior IRS notice, upon three consecutive years’ failure to file Form 990s.  But under the newly enacted Taxpayer First Act (H.R. 3151) (“Act”), effective July 1, 2019, the Form 990 filing landscape has changed significantly.

“For the People” Act: Donor Disclosures, Free Speech Threats, and Other Bad Ideas

Is it campaign finance reform, or yet another threat of harm to First Amendment rights affecting donors and tax-exempt organizations?  This spring, the U.S. House of Representatives passed an “omnibus” campaign finance bill called “For the People Act,” (H.R. 1) which addresses a wide range of election and related matters. The Act expressly excludes Section 501(c)(3) public charities from its donor disclosure and reporting requirements, but not Section 501(c)(4) social welfare or other tax-exempt organizations.  While the proposed legislation likely will go nowhere in the Senate, it warrants notable mention in the following ways.

The Silver Lining of the Dissent in Americans for Prosperity Foundation's Denial of Rehearing "En Banc"

Can controversial groups expect government protection from mandatory disclosures of their participants? Not as the Americans for Prosperity Foundation has painfully learned in California. APF suffered yet another court setback in the federal appellate Ninth Circuit Court of Appeals’ recent denial of an en banc (full court) rehearing. APF has fought the California Attorney General’s mandatory donor disclosures in annual filings, citing First Amendment freedom of speech, association rights, and related concerns for donors’ privacy and protection from harassment.