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IRS Pulls Plug On Donor Social Security Number Proposal

IRS Pulls Plug On Donor Social Security Number Proposal

Well, that was fast.  At least the IRS made the right decision on this.

Just to update you, the IRS recently proposed allowing charities to (optionally) collect the Social Security numbers of donors and report the detailed donor/donation information to them (IRS).  Their logic was that this voluntary effort would provide more relevant donor data and possibly reduce the need to audit as many donors as they do.

The proposal drew nearly unanimous derision for a variety of reasons, including cyber-security and just plain mistrust that the IRS would not use the data punitively.  And that’s not to speak of the donor relations nightmare that would ensue should charities start asking their supporters for their SSN.  That is a sure recipe on how NOT to get additional gifts.

If you were one of the ones who spoke out, good for you.  It worked…this time.

Greg McRay, EA

Greg McRay is the founder and CEO of The Foundation Group. He is registered with the IRS as an Enrolled Agent and specializes in 501(c)(3) and other tax exemption issues.

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