Updates
December 16, 2015
On September 16, 2015, the Internal Revenue Service (IRS) issued proposed regulations to provide an alternative method for substantiating charitable contribution deductions. In connection with these regulations, the IRS will develop a new specific-use information return that charities would have the option of filing by February 28th of every year. This return would include personal information of the charity’s donors from the prior year, including social security numbers or taxpayer identification numbers. Charities choosing this option must also provide a copy of the information return to the donor by the February 28th deadline, but the information return provided to the donor will contain only the information related to that donor.

In response to negative feedback from hundreds of charitable groups and individuals, the IRS released a statement on December 4, 2015 confirming that this method of substantiating contributions will be optional. In lieu of filing the new form with the IRS, charities can continue to provide donors with a written contemporaneous acknowledgement, as described in our full text alert.

To view the full alert, click here.