News & Features

Challenge to IRS Donor Disclosure Rules Faces Key Test

Federal judge will hear arguments on whether lawsuit by Gov. Steve Bullock should be thrown out

HELENA — An attempt to force the Trump administration to resume collecting information about donors to certain nonprofit groups is facing a key courtroom test.

A federal judge in Great Falls will hear arguments Wednesday on whether the lawsuit by Montana Gov. Steve Bullock and New Jersey Attorney General Gurbir Grewal should be thrown out based on IRS officials’ contention the states have no right to sue over last year’s rule change.

Last year, the IRS stopped requiring nonprofits such as social-welfare groups and labor unions to turn over the names of donors who give more than $5,000.

Bullock and Grewal argue the change makes it easier for deep-pocketed donors and so-called “dark-money” groups to hide their political spending.

Bullock is running for the Democratic nomination for president and has made campaign-finance disclosure a signature issue.