Tax Alerts

IRS Reminds Taxpayers of Special $600 Donation Tax Deduction

The IRS has reminded taxpayers that a special tax provision will permit more individuals to easily deduct donations of up to $600 to qualifying charities on their 2021 federal income tax return. Generally, those who take the standard deduction cannot claim a deduction for their charitable contributions. However, a temporary law change allows them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations.

Individual tax filers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021 under this provision. Married individuals filing joint returns can now claim a maximum deduction of $600.

Contributions made by check, credit card, or debit card, and amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization refer to cash contributions. They do not include the value of volunteer services, securities, household items, or other property. Taxpayers must donate to a qualified charity to receive a deduction. The IRS Tax Exempt Organization Search tool can help check the status of a charity.

The IRS has informed that contributions made to supporting organizations or establishing or maintaining a donor-advised fund do not qualify for a deduction. Further, contributions carried forward from prior years or contributions to most private foundations and most cash contributions to charitable remainder trusts do not qualify. Finally, special recordkeeping rules apply to taxpayers who claim a charitable contribution deduction which includes obtaining an acknowledgment letter from the charity before filing a return and retaining a cancelled check or credit card receipt for cash contributions.

 

Rates Used in Computing Special Use Value Issued, Rev. Rul. 2022-16

A listing of the average annual effective interest rates on new loans under the Farm Credit System has been issued […]

Read More
Rates Used in Computing Special Use Value Issued, Rev. Rul. 2022-16

IRS Unintentionally Releases Form 990-T Data

The Internal Revenue Service announced that it has unintentionally made certain data collected from Form 990-T available for bulk download […]

Read More
IRS Unintentionally Releases Form 990-T Data

IRS Clarifies Instructions for Form 8996, IRS Post-Release Changes to Tax Forms, Instructions, and Publications

The IRS has clarified that qualified opportunity zone businesses should not file Form 8996. Form 8996 is filed only by […]

Read More
IRS Clarifies Instructions for Form 8996, IRS Post-Release Changes to Tax Forms, Instructions, and Publications

List of Countries with U.S. Exchange of Information Agreements Updated, Rev. Proc. 2022-35

The IRS has supplemented the list of countries with which the U.S. has an agreement relating to the exchange of […]

Read More
List of Countries with U.S. Exchange of Information Agreements Updated, Rev. Proc. 2022-35

Tuition Debt Relief Will Not Be Taxable Income

The recently announced tuition debt relief program will not add to the tax burden of individuals who are able to […]

Read More
Tuition Debt Relief Will Not Be Taxable Income

IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2022-34

The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage […]

Read More
IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2022-34

Reproduction/Substitute Information Returns Requirements Issued, Rev. Proc. 2022-30

The IRS has provided the specifications for the private printing of red-ink substitutes for the 2022 revisions of information returns, […]

Read More
Reproduction/Substitute Information Returns Requirements Issued, Rev. Proc. 2022-30

IRS Advises Tax Professionals on Signs of Identity Theft, IR-2022-144

The IRS and Security Summit partners have urged tax professionals to be vigilant and look out for the signs of […]

Read More
IRS Advises Tax Professionals on Signs of Identity Theft, IR-2022-144

IRS Issues Statement on CP-14 Notices

The IRS was aware that some payments made for 2021 tax returns were incorrectly applied to joint taxpayer accounts. These […]

Read More
IRS Issues Statement on CP-14 Notices

IRS Announces New Sign-In Process for Form 990-N Filers

The IRS has announced that beginning August 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic […]

Read More
IRS Announces New Sign-In Process for Form 990-N Filers