Atlanta CPA Provides Tax Tips to Ensure That You Have Adequate Documentation to Support Your Charitable Gift Giving

Atlanta CPA Provides Tax Tips to Ensure That You Have Adequate Documentation to Support Your Charitable Gift Giving  

When addressing IRS representation issues and other tax matters during the performance of an audit, it is prudent to follow the lead of your CPA. Being aware of tax law and providing documentation that is accordance with IRS tax law is essential to the successful process and completion of an audit. Below is a sample of an inquiry we might receive in the performance and handling of IRS Representation issues:  

Attached is the page from IRS report that explain they could not verify ABC Charity as a qualified charitable organization/501(c); therefore they disallowed the cash contributions we made to them. Here are the IRS documents from both organizations that make them qualified organization. We include the year end statement from these disallowed in the packages that we have sent to you in the IRS copy and your copy. Please let us know if you need us to send it again.  

Below is my response:  

I have received and reviewed the attached in detail. Though it is possible the IRS might allow cash contributions tax law does not require that they do so.

 Please get to me the total cash paid to each and if at all possible a statement from each organization confirming the amount paid so that I might approach the IRS with as much detail as possible.

In the future I suggest you pay all contributions to charity by check and to be sure to get a year-end statement from each organization prior to tax return preparation. To read more about IRS rules and guidelines visit http://www.hiscpa.com/blog/2009/05/11/duluth-gagwinnett-county-cpa-on-tax-law-surrounding-non-cashproperty-charitable-contributions/  

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for American Entrepreneurs.

John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!