IRS Cautions Against Charity Scams Amid Global Crisis, IR-2023-196

The IRS has issued a warning to taxpayers, advising them to be cautious of fraudulent solicitors who pretend to represent genuine charities. These deceptive charities divert donations away from the intended beneficiaries, and donors are unable to claim tax deductions for their contributions on their returns. The IRS has recommended using the Tax-Exempt Organization Search (TEOS) tool for contributions.

With the TEOS, taxpayers can:

• verify the legitimacy of a charity;
• check its eligibility to receive tax-deductible charitable contributions; and
• search for information about an organization’s tax-exempt status and filings.

Additionally, the IRS has urged taxpayers to report fake or suspicious charities to the FBI’sCharity and Disaster Fraud resources. Further, the IRS has suggested taxpayers to watch out for fake charities using deceptive methods like email, bogus websites, and caller ID spoofing to mimic legitimate donation requests. Some tips for protection are:

• use TEOS to verify if an organization is a legitimate tax-exempt charity;
• don’t give in to pressure, real charities accept donations anytime;
• limit sharing personal information; and
• avoid gift cards and wire transfers, verify legitimacy before donating with credit cards or checks.

Finally, taxpayers who donate money or goods to a charity can qualify for a deduction when itemizing, provided it’s a recognized IRS tax-exempt organization.