An IRS Retreat: Withdrawal of Recently Proposed Regulations Creating New Optional Form for a Charity to File With IRS in Lieu of Contemporaneous Written Acknowledgment for Contributions of $250 or More

An IRS Retreat: Withdrawal of Recently Proposed Regulations Creating New Optional Form for a Charity to File With IRS in Lieu of Contemporaneous Written Acknowledgment for Contributions of $250 or More

News story posted in General, IRS Announcements on 13 January 2016| comments
audience: National Publication, Richard L. Fox, Esq. | last updated: 13 January 2016
Print
||
Rate:

Summary

Richard Fox explains the recent IRS retreat from the contemporaneous filing requirement of donations in excess of $250.00 and we're all relieved.

By: Richard L. Fox, Esquire

On September 16, 2015, Prop. Regs. were issued (REG-138344-13) under IRC § 170(f)(8)(D) that would have created a new, separate form that a charity would need to complete and file - in the absence of contemporaneous written acknowledgment of a donor's gift - in order for a donor to receive a deduction. The proposed regulations, which would have added new regulation 1.170A-13(f)(18), would have implemented the exception under IRC § 170(f)(8)(D) to the "contemporaneous written acknowledgement" requirement for substantiating charitable contribution deductions of $250 or more.  Unlike in the case of a contemporaneous written acknowledgment, the proposed regulations required that donees who opted to use this optional method must report the donor's name, address, and taxpayer identification number to the IRS.  

The donee reporting under the proposed regulations would have been optional on the part of any donee, including small entities. After having received 37,968 comments, many objecting to the requirement that donee taxpayer information be collected and reported to the IRS in order comply with this optional method, the proposed regulations under IRC § 170(f)(8)(D) (REG-138344-13) were withdrawn on January 8, 2016.

The withdrawal notice cites some of the comments as the reason for withdrawal of the proposed rule, stating:

The Treasury Department and the IRS received a substantial number of public comments in response to the notice of proposed rulemaking. Many of these public comments questioned the need for donee reporting, and many comments expressed significant concerns about donee organizations collecting and maintaining taxpayer identification numbers for purposes of the specific-use information return.  In response to those comments, the Treasury Department and the IRS have decided against implementing the statutory exception to the CWA requirement, and therefore that exception remains unavailable unless and until final regulations are issued prescribing the method for donee reporting.  Accordingly, the notice of proposed rulemaking is being withdrawn.

While the proposed regulations gave charities the “option” of filing detailed forms on everyone who contributes $250 or more, which required the inclusion of taxpayer sensitive information be collected and reported to the IRS, there was a legitimate fear that the new “optional” reporting method would ultimately become mandatory. 

Add comment

Login or register to post comments

Comments

Group details

Follow

RSS

This group offers an RSS feed.
 
7520 Rates: November 2.4% October 2.2% September 2.4%

Already a member?

Learn, Share, Gain Insight, Connect, Advance

Join Today For Free!

Join the PGDC community and…

  • Learn through thousands of pages of content, newsletters and forums
  • Share by commenting on and rating content, answering questions in the forums, and writing
  • Gain insight into other disciplines in the field
  • Connect – Interact – Grow
  • Opt-in to Include your profile in our searchable national directory. By default, your identity is protected

…Market yourself to a growing industry