Wednesday, January 27, 2016

Good news for charitable donors!

Cathy Robinson, CPA
The IRS has withdrawn proposed regulations regarding the reporting of donor information.  The proposed regulations would have allowed charities to file information returns about donors instead of providing written acknowledgements to the donors.   The problem with filing of information returns would have required obtaining the social security number of donors.  Some charities felt that asking for a social security number would discourage potential donors.  In addition, other charities were worried about identity theft.
Therefore, you must obtain written acknowledgement from the charity for a donation over $250 and save it for your tax preparer.