How New Rules on Charity Disclosure Work

Basic Requirements:

Timing. As of June 8, charities will be required to send copies of their informational tax forms to anyone who requests them in writing.

ALSO SEE:

IRS Issues Final Rules for Charities on Making Tax Forms Available to Public

Charities generally have 30 days from the receipt of the request to send out the copies. Charities must also make photocopies for anyone who shows up in person. Under current law, they only had to provide access to the forms.

Fees. Non-profit organizations will be able to charge a “reasonable fee” for making photocopies, plus the actual cost of mailing them. The I.R.S. defines reasonable as no more than the revenue service itself charges when it provides the tax returns to the public: $1 for the first page and 15 cents for each subsequent page.

Exemptions:

Charities can receive exemptions from the photocopying requirement if they either:

* Make their tax returns available through the Internet.

* Show that requests for copies are being made by opponents who simply want them to do extra work.

Penalties:

Charity officials who refuse to provide copies of tax returns or to allow public inspection face a penalty of $20 for every day they fall behind in providing a form, up to a maximum of $10,000 per return. An additional penalty for “willful failure” to follow the statute is $5,000 per return.