Charitable Contributions Limits And Substantiation

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Randy Curreri
Research Paper: Charitable Contributions Limits and Substantiation
March 1, 2015

According to the IRS website a donor must have a bank record or written communication from a charity for any monetary contribution before the donor can claim a charitable contribution on his/her federal income tax return (IRS, 2015). Also, the donor must obtain a written acknowledgment from a charity for a contribution of $250 or more. In addition to these laws, if a donor receives any goods or services totaling $75 or more in exchange for a contribution they are required to provide a written disclosure. The organization would provide the following; name of the organization, amount of cash contribution, description, and a statement that no goods or services were provided by the organization in return for the contribution (if that’s the case). In this particular case, it is not listed that the client received any goods or services from the organizations in return for the contributions he made. The charitable contribution deduction is used frequently by taxpayers and is one of the federal government’s top tax expenditures. For fiscal years 2013 to 2017 the projected total from individuals and corporations is estimated at $238.8 billion (Aprill, 2012). Therefore, it is more likely that a tax payer be audited if they use this deduction. Next, I will use information from the CPA journal written by the New York State Society of CPA’s in helping to define what a
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