National Taxpayers Union Foundation’s Taxpayer Defense Center on Monday filed a new lawsuit against the IRS to declare the collection of private donor information in nonprofit tax returns unconstitutional under the First Amendment.
NTUF represents Young America’s Foundation (YAF), a 501(c)(3) nonprofit organization. In 2024, YAF received a letter from the IRS stating information on YAF’s past tax returns may have been leaked by former IRS contractor Charles Littlejohn, now serving prison time for his crimes. In total, the leak involved 78,000 tax returns and exposed the private information of 400,000 Americans, putting them at risk of doxxing and political violence.
“YAF and every organization has the right to private association under the First Amendment,” said Tyler Martinez, NTUF Director of Litigation. “But that is threatened when hundreds of thousands of nonprofit organizations across the country must turn over donor lists to the government, information the IRS does not even use to enforce tax law.”
The suit seeks to end the donor information disclosures required of every 501(c)(3) nonprofit in the U.S. by IRS Form 990 Schedule B. The IRS stopped collection of Schedule B for 501(c)(4) nonprofits in 2020.
Under Americans for Prosperity Foundation v. Bonta (2021) and other landmark Supreme Court cases dating back to the Civil Rights era, any government demand for membership or donor lists must survive an “exacting scrutiny” standard to be upheld under the First Amendment. The information collection must be substantially related to a sufficiently important government interest.
“We’re honored to represent YAF to vindicate their rights against the IRS,” said NTUF Executive Vice President Joe Bishop-Henchman. “The IRS should not stockpile data it doesn’t need or use, especially when it can’t even keep it safe from leaks and thefts.”
The case is 1:26-cv-02449 filed in the United States District Court for the District of Columbia.
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About Taxpayer Defense Center and National Taxpayers Union Foundation
The Taxpayer Defense Center (TDC) is the nation’s only public interest law firm dedicated solely to defending taxpayers against overzealous and unfair tax administration. Because of its work, including suing the government, filing briefs, and analyzing judicial rulings, taxpayers across the country benefit from improved public policy and wins worth tens of millions of dollars for individuals and businesses.
Taxpayer Defense Center is part of National Taxpayers Union Foundation, which provides crucial, impactful research, analysis, and public interest litigation on taxes, government spending, and regulations affecting Americans—state, federal, administrative, and judicial.
About Young America’s Foundation
The mission of Young America’s Foundation is ensuring that increasing numbers of young Americans understand and are inspired by the ideas of individual freedom, a strong national defense, free enterprise, and traditional values.