Senate Bill Introduced to Block IRS from Collecting Social Security Numbers from Donors
Well, that didn’t take long!
We informed our readers last week of a proposal by the IRS to (voluntarily) allow charities to collect and report the Social Security numbers of donors. The idea being that it would reduce fraudulent tax returns. As we said at the time, the idea has been blasted from all sides.
Now, Senator Pat Roberts, R-Kansas, has introduced a bill that would bar the IRS from implementing such a plan. Roberts announced his bill in a Senate floor speech,
The rule would provide the IRS detailed information on who is making donations to particular charities. The IRS has already threatened donors in groups that it doesn’t like. I don’t think we can trust them with a new source of data on donors. There also is no assurance that the agency will stop at this voluntary rule and move to make such reporting mandatory for all contributions and all charities.
Roberts added,
This rule could dramatically reduce people’s willingness to make donations, and burden charities, many of which are small, volunteer operated organizations with new costly administrative costs. The collection and safekeeping issues surrounding this proposal could very significantly stress the good works done by our charitable sector.
We agree fully with Senator Roberts. For the full story, go here.
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If they donate they generally want to have proof that they donated don’t they? Wouldn’t that require some type of operating information and wouldn’t their Social Security numbers be the easiest way to achieve that goal? As for threatening don’t we have a number of government agencies that cover discrimination based on prejudices? Why should that be a concern for a legitimate organization? Certainly, we should be able to settle this in a timely and civil manner. What charities are complaining of abuse?
It’s not a question of proof, really. Most charities receipt their donors. It’s more of a question as to why the IRS would need W2 level data on donations. They don’t. What’s more, charities couldn’t possibly provide adequate cyber-security to prevent data theft. Then there’s the simple problem of charities asking donors to provide this kind of information. They won’t. This was never a workable solution. UPDATE: After almost universal outcry, the IRS pulled the plug on the idea.