Final Tax Regulations Issued Regarding Reporting Requirements for Tax-Exempt Organizations

Thoughtware Article Published: Jun 17, 2020

The IRS and the U.S. Department of the Treasury have announced final regulations regarding information reporting under Section 6033 for organizations exempt from tax under §501(a). The final regulations are consistent with the proposed regulations issued in September 2019 and considered to be a good balance between the need for information for IRS tax administration purposes and the costs and risks associated with reporting the information.

The final regulations remove the annual reporting requirement for tax-exempt organizations not described in §§501(c)(3) or 527 to report the names and addresses of donors who contribute more than $5,000. They also remove the requirement for organizations described in §§501(c)(7), (8) and (10) to disclose the names and addresses of donors who contribute more than $1,000 for a specific charitable purpose. 

Tax-exempt organizations that aren’t required to report donor names and addresses will still be required to file Schedule B with their annual return and include the contribution amounts. These organizations should maintain internal records that contain donor names and addresses in case of an examination.

The final regulations also expand the exception from filing Form 990 or 990-EZ for certain organizations. The expanded gross receipts threshold for all organizations (other than private foundations and supporting organizations) formed in the U.S. is $50,000. Organizations that were previously limited to the $5,000 gross receipts threshold can now file Form 990-N if gross receipts remain under $50,000.

The regulations are effective as of May 28, 2020, and organizations may apply the final rules to returns filed after September 6, 2019. 

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