The Trump administration is weighing a proposal to require nonprofits to disclose in their annual tax filings whether their top officials have been convicted of certain financial or terrorism-related crimes, sources with direct knowledge of the matter told CBS News.
The IRS disclosure requirement would be added to the Form 990, the annual return that nonprofit groups file with the agency, said the sources, who spoke on the condition of anonymity because they were not authorized to talk publicly. Federal officials have viewed it as an effort to pressure tax-exempt groups to cut ties with people who have such criminal records and ensure that donors can make informed decisions about how to best direct their money, the sources said.
Convictions that would have to be reported include providing material support to terrorists, fraud, money laundering, securities fraud, tax evasion, theft and civil judgments from Securities and Exchange Commission or state securities regulators’ enforcement actions.