Conservative groups pressed the IRS to move ahead with its proposal to drop a requirement that certain tax-exempt nonprofits disclose identities of their significant donors.
The groups dominated a list of 16 witnesses set to testify at an agency hearing on the issue Friday. The IRS is trying to remove the requirement that organizations exempt under tax code Section 501(c), except for 501(c)(3) charities and Section 527 political organizations, provide the agency with names and addresses of donors who contribute $5,000 or more.
Critics say the change could transform the nonprofit sector, leading to a flood of anonymous donations—”dark money”—to political organizations. But the hearing began with supporters of the change, including Institute for Free Speech attorney Ryan Morrison, who said the agency “should collect only information that it needs to enforce the tax code.”