U.S. Rep. Peter Roskam (R-IL), chairman of the Ways and Means Oversight Subcommittee, said on Wednesday that he has received broad support from key advocacy groups, including Americans for Tax Reform and the Hispanic Leadership Fund, for his Fair Treatment for All Gifts Act (HR 1104).
The act would permanently guarantee that all donations for 501(c)4, (c)5 and (c)6 organizations will not be subject to the gift tax. Federal law requires that the gift tax must be paid on gifts amounting to more than $14,000, but donations dedicated to nonprofit groups have never been required to pay the gift tax.
Over the past few years, the IRS has been considering making rules to require that taxes be paid on these donations.
Roskam’s bill aims to stop the IRS in its tracks, and he tied his bill to recent scrutiny over the IRS’ treatment of conservative groups.
“Americans who donate to tax-exempt organizations should always be treated fairly and equally by the IRS — an agency with an infamous track record of targeting individuals for their religious and political beliefs,” Roskam said. “Although the IRS claims it is no longer seeking to curb giving to social welfare organizations, we need assurances that this practice will never happen in the future. The Fair Treatment for All Gifts Act, which will codify the longstanding practice of exempting these contributions from the gift tax, marks an important step in shielding Americans from further burdensome taxes and intrusive scrutiny by the IRS.”