States of New York and New Jersey sued the U.S. Department of Treasury and the Internal Revenue Service (IRS) for failing to respond to its request for information.
Attorneys General Letitia James and Gurbir S. Grewal filed the lawsuit on behalf of the states of New York and New Jersey, respectively.
In October 2018, both states submitted information requests to the Treasury Department and the IRS regarding the change in procedures concerning non-501(3) tax-exempt groups’ disclosure of donors on its annual Return (Forms 900 and 990 EZ). The states made their requests under the Freedom of Information Act (FOIA).
Treasury Department, IRS allegedly violated FOIA
The states of New York and New Jersey submitted the FOIA request due to concerns that the new Revenue Procedure 2018-38 will affect their ability to effectively regulate non-501(3) tax-exempt organizations. The new procedure no longer requires non-501(3) tax-exempt organizations to disclose the names and addresses of donors on their annual Return.