Tax Law and News Charities Would Be Permitted to Issue Information Returns to Donors Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Sally P. Schreiber, J.D., Journal of Accountancy Modified Oct 17, 2017 2 min read Charities will be allowed to file information returns instead of providing contemporaneous written acknowledgment of charitable donations under proposed regulations issued by the IRS on Wednesday that implement a statutory exception that donors until now had been unable to use (REG-138344-13). Under the new rules, charities will be allowed to file an information return with the IRS and the donor to substantiate donations of $250 or more. Under Sec. 170(f)(8), a donor must obtain from the charity a contemporaneous written acknowledgment—containing specific information—for any donation over $250. The acknowledgment must be received no later than the time the taxpayer files his or her return for the year the contribution was made. An exception under Sec. 170(f)(8)(D) allows donors to avoid the contemporaneous written acknowledgment requirement if the donee organization files a return in a form provided by IRS regulations that includes the information required under Sec. 170(f)(8)(B). For many years, the IRS has declined to issue regulations permitting information reporting by charitable organizations to substantiate donations. Now, however, the IRS will develop a specific return to use to satisfy this reporting option, which charitable organizations are free to take advantage of or not at their discretion. If the charity does not issue an information return, the donor must still get a contemporaneous written acknowledgment. Under the proposed regulations, a charity would be permitted to issue a return containing the information required under Sec. 170(f)(8)(B), as well as the donor’s name, address, and taxpayer identification number (TIN). Although the TIN is needed so the IRS can match information from the charity with information from donors’ returns, the IRS recognizes that this requirement poses an identity theft risk, especially because the charity must maintain this information for some time. It requests comments on ways to minimize this risk. The information return must be filed with the IRS and the donor by Feb. 28 of the year following the donation to give donors timely information to file their tax returns. This due date is consistent with many other information return due dates. The proposed rules will apply to contributions made on or after the date the regulations are published as final in the Federal Register. Previous Post IRS Updates Per Diem Rates for Lodging and Meals Next Post Global Tax Compliance Heats Up for FATCA and FBAR Written by Sally P. Schreiber, J.D., Journal of Accountancy Sally P. Schreiber is a Journal of Accountancy senior editor. More from Sally P. Schreiber, J.D., Journal of Accountancy Comments are closed. Browse Related Articles Tax Law and News 6 IRS Facts About Gifts to Charity and Acknowledgments Tax Law and News 5 Tax Tips for Charitable Contributions Tax Law and News 12 charitable giving tips for the holiday season Tax Law and News Helping your nonprofit clients make more use of donor-a… Tax Law and News Celebrate Earth Day the tax-wise way Tax Law and News Tracking Charitable Contributions for Your Clients Tax Law and News New Law Imposes Immediate Estate Basis and Reporting Re… Tax Law and News Summary of Preparer Penalties Under Title 26 Tax Law and News E-filing mandate for 10+ info returns explained Tax Law and News Civil Audits: Beware the Fraud Trap