IRS withdraws controversial rule after charity backlash
http://thehill.com/regulation/finance/265039-irs-backs-off-charitable-giving-rules-amid-backlash
IRS withdraws controversial rule after charity backlash
By Tim Devaney - 01/07/16 10:08 AM EST
The Internal Revenue Service (IRS) is backing down from a controversial rule that would have pressured nonprofits to collect the Social Security numbers of their donors.
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The backlash persuaded the IRS to withdraw the proposed rule Thursday after it received nearly 38,000 comments, including a letter signed by 215 charitable organizations that warns they cannot possibly safeguard the Social Security numbers of their donors.
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Even if nonprofits could protect the Social Security numbers or decide to collect it at all, scammers could call the unwitting donors, pretending to represent a charitable organization they donated to and demand this sensitive information.
This would have raised concerns of identity theft across the nonprofit community that would have discouraged donors from giving, critics warned.
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