New rules for 2007 Monetary donations
This entry was posted on 12/18/2006 9:49 PM and is filed under uncategorized.
From the IRS: "To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. A bank record includes canceled checks, bank or credit union statements and credit card statements. Bank or credit union statements should show the name of the charity and the date and amount paid. Credit card statements should show the name of the charity and the transaction posting date.
Donations of money include those made in cash or by check, electronic funds transfer, credit card, and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.
Prior law allowed taxpayers to back up their donations of money with personal bank registers, diaries or notes made around the time of the donation. Those types of records are no longer sufficient."
These changes will be effective for the tax year 2007. The IRS is upping the record keeping requirement here. If you are relying on online bank statements these days, find out how long those records are available free of charge? If you are getting written acknowledgements for all your donations, this change shouldn't effect you.
