Last year, the IRS changed a Nixon-era rule requiring nonprofit organizations to identify donors who give more than $5,000.
The rule was meant to prevent fraud and abuse by tax-exempt groups with nonprofit status—such as social-welfare organizations, labor unions and business associations. Some government officials sued over the change.
On July 30, U.S. District Judge Brian Morris ruled that the IRS did not provide proper public notice before it nixed the requirement. Morris said the public did not have sufficient time to comment on the change before the IRS finalized it.