IRS Proposes Controversial Regulations Regarding Charity Donors' SSNs (CRS Report for Congress)
| Release Date |
Dec. 16, 2015 |
| Report Number |
DONORSSN |
| Source Agency |
Congressional Research Service |
Summary:
The Internal Revenue Service (IRS) has issued a controversial notice of proposed rulemaking relating to the
substantiation requirements that taxpayers must comply with in order to deduct charitable contributions. The proposed
regulations would provide an alternative to current law, under which donors must substantiate charitable deductions of
$250 or more by obtaining a contemporaneous written acknowledgement (CWA) from the donee organization, such as
a §501(c)(3) charity. The CWA must include the amount of cash donated, a description of any donated property, and
whether any goods or services were provided in exchange for the donation. Under existing law, the donee organization
gives the CWA to the donor, and the IRS does not receive a copy. The donor will only have to provide the CWA to the
IRS if specifically requested to do so (e.g., during an audit).
Under the proposed regulations, donee organizations would have the option of either (1) providing a CWA to the donor
as they currently do or (2) filing a special form with the IRS and sending a copy of it to the donor. The form would
include the same information as the CWA, as well as the donor’s name, address, and taxpayer identification number. It
would have to be provided to the IRS and donor no later than February 28 of the year following the donation.
