Treasury, IRS Issue Update to 2015–2016 Priority Guidance Plan

• Date: 01 July 2016
• DOI: http://doi.org/10.1002/npc.30209
• Published date: 01 July 2016

Bruce R. Hopkins’ NONPROFIT COUNSEL

July 20162THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY

Bruce R. Hopkins’ Nonprofit Counsel DOI:10.1002/npc

is “not prepared to wait until an [APF] opponent carries

out one of the numerous death threats made against its

members.”

As to the attorney general’s promise to keep Sched-

ule B information confidential, the court concluded that

that office has “systematically failed” to do so. Indeed,

the court found the amount of “careless mistakes”

made by the attorney general’s registry “shocking.”

It was said that APF discovered over 1,400 Schedule

Bs that were publicly available. APF identified 1,778

Schedule Bs that were publicly posted on the registry’s

website, including 38 that were discovered the day

before the trial.

Law and Analysis

Fundraising for charitable purposes is one of

the highest forms of free speech, protected by the

First and Fourteenth Amendments. Injunctive relief

is appropriate to prevent state officials from violat-

ing the First Amendment by compelling disclosure

of the names of an organization’s supporters. This

court ruled that the attorney general’s requirement

that APF submit its Schedule B “chills the exercise

of its donors’ First Amendment freedoms to speak

anonymously and to engage in expressive associa-

tion,” causing APF to suffer “irreparable harm.” The

attorney general’s threat to cancel APF’s charitable

registration would, if done, “preclude it from exer-

cising its First Amendment rights to solicit funds in

California.”

The attorney general was said to have “offered

no evidence that she will suffer injury if [APF] does

not produce its Schedule B. The court held that “[b]

alancing the disclosure requirement’s burden on First

Amendment interests against any negligible burden that

an injunction might impose, it is clear that the balance

of hardships supports enjoining the attorney general.”

The “public interest,” concluded the court, “favors an

injunction.” [27.3(i)] ◆

TREASURY, IRS ISSUE UPDATE

TO 2015–2016 PRIORITY

GUIDANCE PLAN

The Treasury Department and the IRS, on April 30,

issued their third-quarter update to the 2015–2016

Priority Guidance Plan (summarized in the October 2015

issue). This plan includes 18 exempt organizations law

projects and four charitable giving law projects. One

project has been suspended due to a legislative prohibi-

tion; another has been withdrawn in the face of intense

public and political opposition.

Tax-Exempt Organizations Law Projects

The tax-exempt organizations law projects in this

plan are the following:

• Proposed regulations (under IRC § 501(c)) pertaining

to political campaign activities; this project has been

suspended because of its prohibition by Congress in

the omnibus spending legislation (referenced in the

February 2016 issue).

• Guidance regarding methods of allocating expenses

relating to dual-use facilities (IRC § 512(a)(1)).

• Issuance of update to Rev. Proc. 2011-33 for EO

Select Check.

• Revenue procedures updating grantor and contribu-

tor reliance criteria (IRC §§ 170, 509).

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