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Nonprofit may claim damages from wrongful IRS disclosure

Nonprofit may claim damages from wrongful IRS disclosure

Nonprofit may claim damages from wrongful IRS disclosure

The Citizen Awareness Project, a nonprofit whose application for 501(c)(4) social welfare exemption was improperly given to the ProPublica media outlet by the Internal Revenue Service before it was approved and statutorily available for public inspection, has been authorized to collect up to $4819.78 in “actual damages” resulting from the disclosure. A federal District Court in Colorado has engaged in a close reading of the statute and prior case law to come up with the maximum amount to which the organization may be entitled. An IRS examining technician in Cincinnati improperly responded to the media request of ProPublica in 2012, and the application, without being attributed to the...

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