IRS Crackdown on Tax Deductions Puts Focus on Gift Records

IRS

Richard White/Chronicle of Philanthropy

Enlarge Image
close IRS

Richard White/Chronicle of Philanthropy

Charities are facing new pressure to make sure they say thank you to donors exactly the way the IRS says. And donors must be fastidious about the steps they take to prove they made a gift if they expect to get a charitable deduction.

That new reality is the lesson from two Tax Court rulings saying the Internal Revenue Service was right to deny tax deductions to donors who didn’t have the right paperwork.

The court has denied charity write-offs plenty of times over the