Our 501(c)(3) public charity receives a few donations of $5000 or more every year. Our accountant lists these donations on our Schedule B to the Form 990 but insists on omitting the donors’ names and addresses. He says the donor info is confidential and the IRS doesn’t require it. I understand that the Form itself is confidential, but can find no documentation that says we can withhold that data from the IRS. Is there any precedent or ruling that allows this? —From the Website.
Schedule B has been quite controversial in recent years, and the Trump administration eliminated the requirement to file the names and addresses of donors listed on Schedule B for essentially all organizations filing Form 990 or 990-EZ, other than charities exempt under section 501(c)(3) of the Tax Code. (Rev. Proc. 2018-38.) Your accountant is correct that the names and addresses are not required for many filers of Form 990, but public charities and private foundations exempt under section 501(c)(3) (including your public charity) are still required to file the names and addresses of the designated donors when sending the Schedule to the IRS.
Schedule B must be made available for public inspection by the filing organizations, and 501(c)(3) organizations are permitted to redact the names and addresses of the donors listed. But none of the organizations filing the Schedule B may redact the amount or type of contribution made. Suggest that your accountant review the Instructions for Schedule B. They make these revised rules pretty clear.