Proposed IRS change could require a social security number with large donations

Proposed IRS change could require a social security number with large donations

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Tim Delaney, president and CEO of the National Council of Nonprofits, estimates that the proposed amendments would increase workloads significantly in order to meet the demands of a nonprofit reporting network — to fix a system that the IRS says works well.

According to the Substantiation Requirement for Certain Contributions:

“The present CWA system works effectively, with minimal burden on donors and donees, and the Treasury Department and the IRS have received few requests … to implement a donee reporting system.”

“Why are we trying to fix a system that already works?” Delaney said.

Delaney also fears that requiring a social security number would hurt nonprofits’ abilities to bring in large donations. He says if the amendments are adopted, he would likely see a huge increase of $249.99 donations from those who would normally donate thousands.

Critics also speculate that many nonprofits — many of which are small operations that are organized on personal computers — will be unable to handle sensitive social security numbers, especially with cyberterrorism on the rise.

“I would submit that if the FBI, the CIA and the White House are prone to attacks, than anyone is,” Delaney said. “The proposal strikes virtually everyone who hears about it as a gift this holiday season to the fraudsters and scam artists who make their living stealing the identities of honest people.”

Source Name: 
KGTV
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