Internet Shopper May Deduct Gifts to Charity
An online shopper who contributes to charity a rebate offered by an Internet shopping mall may deduct the amount of the rebate from income taxes, the Internal Revenue Service ruled in response to a request from the shopper. A company that ran an online shopping site, featuring links to an array of…
By Elizabeth Schwinn
Contributor
Senators Urge Passage of Charity Tax Breaks
Several U.S. senators are urging passage of legislation that aims to stimulate giving by creating new tax incentives for foundations and other charitable donors. Sen. Rick Santorum, Republican of Pennsylvania, and Sen. Evan Bayh, Democrat of Indiana, say charities, especially local ones, need help…
By Elizabeth Schwinn
Contributor
IRS to Step Up Charity Regulation
The Internal Revenue Service, which has been under fire from Congress, charity leaders, and tax lawyers for failing to do enough to regulate tax-exempt groups, plans to dramatically increase its efforts next year. In detailed new “implementing guidelines” adopted by the tax agency’s charity…
By Elizabeth Schwinn
Contributor
City Seeks Tax Payment From Local Charities
The city of Montpelier, Vt., is joining a growing list of local governments seeking revenue from tax-exempt groups, asking the city’s nonprofit groups to chip in a “voluntary” property-tax payment. Mayor Chuck Karparis sent a letter recently to all of the city’s nonprofit groups that said…
By Elizabeth Schwinn
Contributor
Deduction Gives Little Aid to Charities, Report Says
A proposal in Congress to allow people who don’t itemize their income-tax deductions to write off up to $100 a year for charitable contributions will have little impact on giving, according to a congressional report. The proposal is part of a broader bill aimed at helping faith-based charities…
By Elizabeth Schwinn
Contributor
IRS Offers Guidance to Disaster-Relief Charities
Disaster-relief charities, including those formed to help victims of the September 11 attacks, need to be careful about whom they aid and under what circumstances in order to qualify for tax-exempt status, the Internal Revenue Service warned in new guidelines. The IRS had been planning the…
By Elizabeth Schwinn
Contributor
Write-Offs: Estate-Tax Figures; Levies Paid on Charity Business
Wealthy Americans who paid estate taxes gave $10.1-billion to charity through their estates in 1995, according to a recent IRS analysis of tax data. The figure represents 7 percent of all giving for that year, based on figures in the 1995 edition of Giving USA, published by the American Association…
By Elizabeth Schwinn
Contributor
Foundation May Pay Trustees Based on Assets, IRS Says
A private foundation can compensate its trustees based on a percentage of the fund’s assets without violating tax laws that bar “self dealing” and excessive compensation, the Internal Revenue Service has decided in response to a query from the foundation. The foundation had asked the tax agency for…
By Elizabeth Schwinn
Contributor
IRS Begins Project to Allow Online Filing
The Internal Revenue Service is seeking comment on a new project to let nonprofit groups file their informational tax returns electronically, according to Midori Morgan-Gaide, the IRS official who is in charge of the project. The IRS wants to know how many charities will use online filing when it…
By Elizabeth Schwinn
Contributor
IRS Denies Deduction for Donated News Footage
Broadcasting companies may be less interested in donating old news footage to charity now that the I.R.S. has ruled that one company’s donations do not qualify for a charitable deduction. The case involved a broadcasting company that periodically passed on clips of local news stories to a charity.…
By Elizabeth Schwinn
Contributor