Senate Advances IRS Reforms with Protections for Nonprofits

This week, the Senate approved the Taxpayer Assistance and Service (TAS) Act by unanimous consent, sending the legislation to the House.

The package includes 65 bipartisan reforms to modernize the Internal Revenue Service (IRS), strengthen taxpayer rights and improve tax administration.

"Taxpayers deserve a tax system that is competent, responsive and works for them," said Senate Finance Committee Chair Mike Crapo (R-ID).

Of particular interest to associations and nonprofits is a bipartisan provision, from Sens. James Lankford (R-OK) and Raphael Warnock (D-GA), clarifying an organization's right to an administrative appeal when the IRS denies or revokes its tax-exempt status. The measure would also require written notice explaining that right, strengthening procedural protections for tax-exempt organizations.

The legislation also includes a provision from Sens. Steve Daines (R-MT) and Catherine Cortez Masto (D-NV) to significantly increase penalties for unauthorized disclosure of taxpayer information. Those protections are especially relevant to charitable organizations whose confidential donor information is reported to the IRS. Together, these provisions would strengthen accountability and privacy protections for the nonprofit community.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.