IRS withdraws proposed Gift Substantiation regs
The Treasury Department and IRS announced January 7 that it is withdrawing the proposed Gift Substantiation regulation that was opposed by nonprofits across the country. The official withdrawal notification was published today (Jan. 8) in the Federal Register.
The proposed regulations would have permitted, but not required, 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. A new informational tax return would have required the nonprofit using it to collect the donor’s name, address and Social Security number or other taxpayer ID number and also provide a copy to each donor.
Thank you to our members who joined the Providers' Council in signing on to a letter submitted to the IRS by the National Council of Nonprofits, and to those members who advocated individually in opposition to the proposed change. In all, the Treasury and the IRS received 37,977 comments during the rulemaking period that ended on Dec. 16, the majority of which were against the proposed changes.
You can read the National Council's comments, submitted on behalf of the nonprofit community, here.