User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


64° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

News

[0] My Saved Articles
Back to all news

Business

Find local businesses
on the KELO Pages!

 

IRS Receipt Rule

January 7, 2013, 9:50 PM by Angela Kennecke

IRS Receipt Rule
SIOUX FALLS, SD -

It's that time of year: time to organize all your documents and start working on your 2012 tax return.  If you're counting a charitable deduction, there's an important rule you need to know.

Mondays are always busy at the Goodwill donation drop-off site after people spend the weekend cleaning out closets.

“It's right on the way to work; once a year, I bring clothes here. Kids outgrow them.  Toys they don't use anymore.  Might as well give them to someone who can use it," Dale Zomer of Harrisburg said.

And Zomer makes sure to get his receipt to take advantage of the tax deduction for making the donation. 

"We just give them to the tax man. I tell him what we donated and he takes care of it from there," Zomer said.

But the tax guy is finding that not all charitable donations are created equal. 

"We are seeing many organizations that don't have that proper wording, including churches that don't have the proper wording on the receipt, to allow that taxpayer to take the deduction.  If that wording is not on the receipt, the IRS will not allow the deduction," tax accountant Chuck Nelson said.

If the non-profit organization does not use the words, ”No goods or services were received in exchange for this donation," you could be out of luck in taking the deduction on your tax bill for any donation over $250.

“There are a lot of gray areas in the tax law, but this is black and white. You have to have to have proper wording and proof of payment to be able to take the contribution as a deduction," Nelson said.

Goodwill does have that wording on its receipts, but even with the correct documentation, just taking the deduction can raise a red flag with the IRS and you could end up being audited.

“Over the last few years, we've seen the IRS challenge, or audit, a number of tax payers to make sure they have the proper documentation and proof of payment to make sure they're eligible to take those donations on their tax return," Nelson said.

Another thing to keep in mind, you must have the proper receipt on your donation before you file you tax return.  The IRS does not allow you to go back to the organization to get that receipt once you've been audited.

IRS Charitable Deductions

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

View business

You may also like

First DTSF Incubator Store Open For Business

7/23/2014 6:30 AM

605 Running Co., 124 S. Phillips Avenue, just opened its doors on Friday. It's a big grand opening for the store, but also for Downtown ...

Full Story | Watch
Fruit From Walmart And Costco May Be Contaminated

7/22/2014 11:23 AM

A Central California company has issued a voluntary nationwide recall of specific lots of its fresh peaches, plums, nectarines and pluots over concern...

Full Story
Third Walmart Preparing To Open In Sioux Falls

7/22/2014 6:10 PM

Sioux Falls latest Walmart store is preparing to open in just a few weeks.

Full Story
Lance Armstrong Is Grand Marshal For Sturgis Ride

7/21/2014 3:02 PM

Dethroned cyclist Lance Armstrong has been named the official grand marshal of the mayor's ride to kick off the Sturgis Motorcycle Rally.

Full Story
Deciding When To Collect Social Security

7/22/2014 10:10 PM

78 million Baby Boomers are retiring or preparing to retire.  The question they all face is when to draw their Social Security benefits. 

Full Story | Watch


Events