Write-Offs

August 19, 2004 | Read Time: 1 minute

The IRS has released a memorandum on credit-counseling organizations that concludes that many organizations do not meet the standards for receiving tax exemptions. The memorandum, released by the IRS chief counsel, is essentially a blueprint to help auditors and others in the IRS decide when to revoke a credit-counseling organization’s tax-exempt status — and how to make certain the action will hold up in court. The memo can be obtained online at http://www.irs.gov/pub/irs-wd/0431023.pdf.
Repealing the federal income tax on estates would greatly reduce charitable giving, the Congressional Budget Office says in a new report. Overall giving to charity would decline between 6 and 12 percent a year, while the decline in charitable bequests would range from 20 to 30 percent annually. The report, “The Estate Tax and Charitable Giving,” is available online at http://www.cbo.gov/byclasscat.cfm?cat=33.