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Many Political Tax-Exempts No Longer Required to Report Donors

  • Treasury says 501(c)4 groups don’t have to show donors to IRS
  • Move could obscure the source of illegal political donations
Views Of The IRS Headquarters As Congress Debates Tax Reform
Photographer: Andrew Harrer/Bloomberg

Many tax-exempt groups that participate in politics will no longer be required to disclose their donors to the Internal Revenue Service, the Treasury Department said.

The change means that so-called Section 501(c)4 groups, known as “social-welfare” organizations, no longer have to tell the IRS who gave them donations. The groups can be engaged in politics, so long as they don’t spend more than half of their money on campaign advertisements or activities to sway an election. Donors do not have to be disclosed to the public.