Strict Substantiation Requirements for Charitable Contributions

NSTPCharitable Contribution Deductions, Internal Revenue Service (IRS)

Strict Substantiation Requirements for Charitable Contributions

In case you thought this issue was no longer being audited by the IRS … Strict Substantiation Requirements for Charitable Contributions Simpson, T.C. Summary Opinion 2019-9, May 2, 2019 Under strict substantiation requirements for cash charitable contributions of less than $250, a taxpayer must have one of the following: A bank record such as a canceled check, bank statement, or credit card statement, A receipt with date, contribution amount, and organization name, or Payroll records and a pledge card, if made by payroll deduction. For cash charitable contributions of $250 or more, a taxpayer must obtain written acknowledgement from the charitable organization that shows the following: Date and amount of contribution, Whether any goods or services other than intangible religious benefits were provided by the organization (including a good faith estimate of the value), and A statement that the only benefit the taxpayer received was an intangible religious benefit (if applicable). The taxpayers in this case deducted $2,125 for cash charitable contributions they made to their church for 2013. The taxpayers credibly testified during their tax court trial that they contributed tithes and offerings to their church by check and in cash during the year. They said they received a … Read More

Tool Helps Donors Research Tax-Exempt Organizations

NSTPInternal Revenue Service (IRS)

Tool helps Donors Research Tax-Exempt Organizations

Tool Helps Donors Research Tax-Exempt Organizations Before donating to a charity, taxpayers often want to research the organization. The IRS has a tool that helps donors research information about charities and other tax-exempt organizations fast and easily. The Tax Exempt Organization Search is available anytime on Here are some things taxpayers will find when they use the TEOS tool: Forms Images of an organization’s forms 990, 990-EZ, 990-PF and 990-T filed with the IRS. New filings are added monthly. A simplified search process TEOS is mobile friendly, which provides access to the search tool using smartphones or tablets. Favorable determination letters These are issued by the IRS when an organization applied for and met the requirements for tax-exempt status. The IRS continues adding determination letters to the site. Eventually, all determination letters issued since January 2014 will be available. Other information This includes whether an organization: Is eligible to receive tax-deductible contributions. Has had its tax-exempt status revoked because it failed to file required forms or notices for three consecutive years. Filed a Form 990-N annual electronic notice with the IRS. This applies to small organizations only. Publicly available data from electronically-filed 990 forms is still available through Amazon … Read More