IRS Must Disclose Determinations of Tax-Exempt Status - December 15, 2003 Vol.4 No.25

December 15, 2003 Vol.4 No.25:

Published: 12/15/2003

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IRS Must Disclose Determinations of Tax-Exempt Status

On Dec. 2, the United States Court of Appeals reversed a U.S. district court decision that the IRS can keep documents on determinations for organizations’ tax-exempt status private.

The court found that the Treasury Department’s regulations under the IRS Code affirming nondisclosure for determinations that deny or revoke tax-exempt status of organizations violates the Code’s disclosure provision. The Treasury Department’s regulations were added to the IRS Code in 1976 in an effort to protect the confidentiality of tax returns. However, the appeals court ruled that the disclosure of determinations could be presented in a redacted format, thereby keeping the privacy of the organizations involved.