Charitable Contribution Substantiation

[jainen]

I don't have a problem

I don't have a problem with the rule. It's no different from requiring substantiation of casual business expenses like parking. People who make regular contributions by check or collection envelopes won't be inconvenienced in the least.

[Black Bart]

They have?

Say What? They have always been required to keep a record.

But, but, but...I don't know anybody who writes down their Wal-Mart pot-drops. And besides, even though I don't believe many "I put X$ cash in the church plate" stories, you surely aren't suggesting that I tell my clients that? To do so would be a breach of good manners hereabouts and, while a killing is occasionally excusable, rudeness is unforgivable.

Well, IRS stuff happens and I guess clients are just gonna have to take their chances. The question is "do I get receipts for this trivia for the rest of my life or do I risk owing $35 if audited?" I think we'll take our chances.

[New York Enrolled Agent]

Sea-tax

Here is the section from the Pension Act - look at part (b)

SEC. 1217. MODIFICATION OF RECORDKEEPING REQUIREMENTS FOR CERTAIN CHARITABLE CONTRIBUTIONS.

(a) Recordkeeping Requirement- Subsection (f) of section 170, as amended by this Act, is amended by adding at the end the following new paragraph:

`(17) RECORDKEEPING- No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution.'.

(b) Effective Date- The amendment made by this section shall apply to contributions made in taxable years beginning after the date of the enactment of this Act

[sea-tax]

Ny Ea Thanks for the response that makes it a little more clear. I never thought you were wrong because you have never been wrong before . I just had trouble following you guys

Thaks again

[susieq]

contribution substantiation

Thanks for all of the comments - I did try the IRS and the expert said that the receipt issue is in effect beginning in 2007 (tax years beginning after 8/06 - for calendar yr tp's that would be 2007) That answer came after much time on hold and she researching and discussing with colleagues

[Brad Imsdahl]

I don't have a problem with the rule. It's no different from requiring substantiation of casual business expenses like parking. People who make regular contributions by check or collection envelopes won't be inconvenienced in the least.

Actually it will be different. TTB page 8-2 under Substantiation for Travel, Meals, and Entertainment, the 5th bullet says, "An expense (other than lodging) less than $75 does not need a receipt or similar evidence to support a deduction. [Reg. Sec. 1.274-5(c)(2)(iii)]

[jainen]

I was wondering

>>less than $75 does not need a receipt<<

I was wondering if that was the origin of the Rule of 72 you mentioned.

[Davc]

Keeping your own records, such as writing your contributions into your day planner, will not cut it anymore. The records must have some third party authentication - such as cancelled checks, credit card statements, acknowledgements from the donee, etc.

My comment was regarding the "estimate" remark I replied to.

[Brad Imsdahl]

>>less than $75 does not need a receipt<<

I was wondering if that was the origin of the Rule of 72 you mentioned.

That might be it. Maybe after all these years I mixed up JG EA's rule of 72 with the rule of 75.

[dyne]

charitable contribution

Back in the sixties and up to about 1976, IRS MIGHT allow a deduction for $78.00 for
miscellanious charitable contributions without any substantiation. Not 72 and not 75,
but $78. I remember thinking and saying that it was $1.50 per week. I do not remember
where IRS got this amount. It was to cover sunday school contributions, etc. Office Auditors
and Tax Auditors MIGHT allow $78.00 additional but only if something ($200, etc.) was
verified as given to the church. The $78.00 was NOT allways allowed.

[Brad Imsdahl]

Well, at least I got it close. I knew it was something in the 70s.

Any idea where IRS came up with 78?