ALEC Files Amicus Brief in Buckeye v. IRS, Urging Sixth Circuit to Rein Intrusive IRS Reporting Obligations

The American Legislative Exchange Council (ALEC) filed an amicus brief last week in The Buckeye Institute v. Internal Revenue Service, a case currently before the Sixth Circuit, challenging the IRS’s ongoing effort to compel intrusive employment-related reporting from a nonprofit organization. The case raises critical concerns about federal agency authority to compel the disclosure of donor information, separation of powers, and the freedom of association protected by the First Amendment.

The case was originally filed in December 2022 by The Buckeye Institute and contends that the mandatory donor-disclosure requirement the IRS imposes on certain nonprofits is unconstitutional. The Buckeye Institute argues that the mandatory IRS disclosure of certain contributors chills donor support because many of its donors—fearing retaliation or public exposure—reduced or ceased giving after a politically-motivated audit or began giving anonymously and forewent tax-deductible receipts.

The ALEC amicus brief underscores that this dispute is not simply about tax administration, but about foundational limits on executive branch power and the structural safeguards of the First Amendment.

Filed in support of the Buckeye Institute, the brief showcases the ALEC experiences that illustrate how mandatory disclosure has repeatedly led to harassment, public exposure, and threats to associational privacy against ALEC and its public sector legislator members. The brief warns that allowing the government to compile and maintain a centralized federal database of donor identities undermines constitutional protections of free association, as it invites abuse, harassment and the chilling of free association. ALEC argues that such broad and indiscriminate collection of donor information by the IRS should be boxed into the unconstitutional category of dangerous threats to free association—as such a reporting requirement must fail the “exacting scrutiny” analysis the First Amendment demands.

This case is not about taxes or tax status— it’s about whether Americans can support causes they believe in without fear of exposure or retribution. ALEC’s filing is one of many amicus briefs submitted by a wide range of organizations in support of Buckeye’s challenge. The outcome of this appeal could have sweeping implications — not only for Buckeye, but for nonprofits and donors throughout the jurisdiction of the Sixth Circuit, and depending on the litigation outcome, potentially nationwide.