New York’s “Stop Hacks and Improve Electronic Data Security Act (SHIELD Act)” (the “Act”) officially took effect on October 23, 2019. In pertinent part, the Act amends New York General Business Law (“GBS”) § 899 to expand the scope of “private information” covered under existing data breach notification provisions, to more broadly define what constitutes
Federal Court Invalidates New York Donor Disclosure Law
A federal judge has invalidated a New York state Ethics Law requiring § 501(c)(3) and § 501(c)(4) tax-exempt organizations to publicly report their donors under certain circumstances.
Background. Organizations exempt from taxation under Internal Revenue Code (“IRC”) § 501(c)(3) (charitable organizations) are expressly prohibited from participating in any political campaign activity for or against
New York Attorney General Releases Guidance on Solicitation Disclosure Requirements
Effective March 2019, § 174-b of the New York Executive Law was amended to add a new requirement that any solicitation by or on behalf of a charitable organization—including any solicitation by a professional fundraiser or professional solicitor—must include a statement of the New York Attorney General’s website address (www.charitiesnys.com) and telephone number ((212) 416-8686)
Court in Mayo Clinic v. U.S. Invalidates U.S. Treasury Regulation
In what may be a bellwether for future challenges to existing U.S. Treasury Regulations, on August 6, 2019 the United States District Court for the District of Minnesota in Mayo Clinic v. United States invalidated Treasury Regulation § 1.170A-9(c) on the grounds that the Treasury Department exceeded the bounds of its statutory authority when it
New Workplace Harassment Rules Increase Protections for Workers
On August 12, 2019, Governor Andrew Cuomo signed into law S.6577/A.8421 (the “Act”), providing new workplace harassment protections for New York workers. While certain provisions of the previous law applied only to employers with four or more employees, the Act is applicable to all employers in the state—including nonprofits.
Effective October 11, 2019, the Act
IRS Issues Proposed Regulations and Notice in the Wake of Bullock v. IRS
On September 10, 2019, the Internal Revenue Service issued proposed updates to the information reporting regulations applicable to tax-exempt organizations. The proposed regulations generally incorporate existing statutory amendments and IRS guidance provided since the current regulations were adopted.
Among the proposals is a regulation that would put into effect the changes previously announced in Revenue
Private Foundation Fraud Suit Allowed to Proceed
A Manhattan Surrogate’s Court judge recently ruled that our client Radio Drama Network, Inc., a private foundation, could proceed with its lawsuit to invalidate testamentary instruments that deprived it of a $100 million bequest from its founder. For more on this case, click here.
Court Reinstates Nonprofit Donor Disclosure Requirements
On July 30, 2019, the court in Bullock v. IRS, No. CV-18-103-GF-BMM (D. Mont. July 30, 2019) invalidated IRS Revenue Procedure 2018-38 governing tax-exempt organizations’ disclosure of donor information on the grounds that it was promulgated without the required notice-and-comment period.
Background
As described in our previous blog post, prior to Revenue Procedure
Tax Treatment of Charitable Contributions of Virtual Currency
The Internal Revenue Service (“IRS”) defines virtual currency as “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” Virtual currency is not backed by a government-issued legal tender. Convertible virtual currency such as Bitcoin—by far the most popular—may be used to pay for
Taxpayer First Act Requires All Tax-Exempt Organizations to E-File
Our recent Client Advisory discusses the Taxpayer First Act , enacted on July 1, 2019, which includes amendments to the Internal Revenue Code that significantly impact tax-exempt organizations. Read it here.