IRS Proposing New Rules Dealing With Charitable Contribution Deductions

The Internal Revenue Service (IRS) has proposed new rules that deal with charitable contribution deductions.  Under the current rules donors that want to claim charitable contribution deductions of $250 or more have to substantiate it by providing the IRS with a “contemporaneous written acknowledgement” from the recipient charity.  The new regulations will provide an exception to this rule if the charity files a tax return with the IRS reporting the contribution. 

The return provided by the charity must contain the organization’s name as well as donor’s name, address, taxpayer identification number, and the amount that was donated.  The charity must also tell the IRS if the charity provided any services in return for the donation as well as a description and good faith estimate of the value of any goods or services that the charity may have provided. 

See J. J. Harwayne Leitner, LaVerne Woods, and Coleen M. McGrath, IRS Proposes New Rules for Substantiating Charitable Contribution Deductions: What Every Charity Needs to Know, Davis Wright Tremaine LLP, October 7, 2015.