WASHINGTON, DC – After introducing legislation to block a proposed Internal Revenue Service (IRS) rule that would have threatened the privacy and security of charitable donors, U.S. Senator Pat Roberts today announced the IRS has scrapped the proposal altogether.

“I am pleased the IRS has listened to reason and has scrapped this plan. The rule would have had a chilling effect on charitable giving and would have added a costly burden to charitable organizations.

The rule, first proposed by the IRS in September of 2015, called on charities to ask for additional personal donor information including Social Security numbers for any donation more than $250.00.

Under current law, the responsibility to substantiate the contribution is on the donor. Most non-profits provide that information to the donors for their record-keeping.

The IRS published its decision to withdraw the proposed rule in the Federal Register. To read the announcement, see below.

In addition to the burden on charitable organizations and their donors, Roberts was concerned with the recent actions of the IRS following the targeting scandal and its failures to protect private taxpayer information from hackers.

“Given that the agency has not yet adequately addressed the issues surrounding breaches of existing taxpayer information, a point the IRS readily acknowledges, and states that the existing system of substantiating charitable contributions works well, there was no compelling tax administration or enforcement reason to move forward with this proposal.

In December, Senator Roberts introduced a bill, S. 2370, to simply block the proposed rule from taking effect.

Charitable organizations also spoke out against the IRS proposed rule. Tim Delaney, president and CEO of the National Council of Nonprofits, recently wrote: “…the IRS proposal would open the door for scam artists…Nonprofits have neither the financial resources nor sufficient staffing to combat hackers who will see an easy source for Social Security information. This also creates a liability nightmare for innocent nonprofits…To be asked to share their address, their credit card number and their Social Security number all in the same place would be enough to scare even the most committed donor to decline to give.”

Just last month, Senator Roberts spoke on the Senate floor about his bill. For audio and video of the speech to download, go here.

Senator Roberts has been an outspoken critic of the IRS. Earlier this year, Roberts took aim at the scandal-ridden IRS by introducing a bicameral bill with Senator Jeff Flake (R-Ariz.), Speaker Paul Ryan (R-Wis.), and Congressman Peter Roskam (R-Ill.).  The Stop Targeting of Political Beliefs by the IRS Act would stop cold further attempts by IRS to exploit bureaucratic loopholes to restrict the free speech rights of the same types of tax-exempt social welfare organizations victimized in the IRS political targeting scandal.

Senator Roberts also introduced the “Federal Employee Tax Accountability Act” to require federal employees to be current on their federal income taxes, and would prevent federal personnel who are delinquent in paying a federal tax liability from receiving a bonus or cash award. Exceptions are made for tax debt being paid pursuant to an agreement with the IRS and for certain hardships. According to the Inspector General, close to $3 million was awarded to IRS staff with violations on their records, with about half of that amount going to people with tax violations on their record.

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