Conservatives cheer IRS rule change shielding donor lists from disclosure

Conservatives on Tuesday hailed a move by the IRS to stop requiring certain tax-exempt groups, including politically active organizations such as the National Rifle Association, to identify their donors.

Senate Majority Leader Mitch McConnell said it was a victory for free speech and a “straightforward, commonsense policy decision.”

“It’s particularly welcome news to those of us who are intently focused on defending the First Amendment, for those of us who raised concerns during the last administration about activist regulators punishing free speech and free association,” Mr. McConnell said on the Senate floor. “The IRS will no longer pointlessly demand private contributor lists from whole categories of tax-exempt organizations.”

The Treasury Department said the policy change will maintain donor disclosure requirements for traditional charity groups organized under section 501(c)(3) of tax law. But it frees labor unions, advocacy groups, veterans organizations and other nonprofits such as Planned Parenthood that do not receive tax-exempt money from complying with the decades-old confidential disclosure requirements.

“Americans shouldn’t be required to send the IRS information that it doesn’t need to effectively enforce our tax laws, and the IRS simply does not need tax returns with donor names and addresses to do its job in this area,” said Treasury Secretary Steven T. Mnuchin.