Congressman Peter Roskam

Representing the 6th District of Illinois

Chairman Roskam Introduces Bill to Stop IRS Targeting Donations

Feb 26, 2015
Press Release

WASHINGTON, DC—Today, Ways and Means Oversight Subcommittee Chairman Peter Roskam (R-IL) released the following statement after introducing H.R. 1104, the Fair Treatment for All Donations Act, to permanently ensure donations to 501(c)4, (c)5, and (c)6 organizations are not subject to the gift tax. Federal law mandates that gifts in excess of $14,000 are subject to the gift tax, but donations to nonprofit organizations have always been considered tax-free. However, in recent years the IRS has threatened to apply the gift tax to these contributions. 

“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. 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 Donations 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.”

Under the Internal Revenue Code: 
•    501(c)4 designates a qualifying social welfare organization.
•    501(c)5 designates a qualifying labor union or agriculture organization.
•    501(c)6 designates a qualifying business league, such as a Chamber of Commerce.