Your charitable deductions made throughout the year are at risk of being denied by the IRS if you do not meet the IRS substantiation requirements. Meeting the substantiation requirements is about the date on the paperwork, and the legitimacy of the charity. Discuss your donations with an accountant to ensure full credit.
How to Comply With the Substantiation Requirements for Your 2014 Donations:
- Obtain a contemporaneous written acknowledgment from the legitimate charity.
- The acknowledgment should state the amount of the donation and whether any goods or services were received in exchange, and if so, their value.
What does the term "contemporaneous" mean when it comes to the IRS? It simply means that the written acknowledgment should be dated earlier than the date you file your tax return. Even if you have an extended tax return due date it is fine as long as the date of filing is after the date on the acknowledgment from the charity. If you have not received the written acknowledgement, you may have to put off filing, but it is worth the savings. Be sure to request an extension if you put off filing while waiting for the written acknowledgment.
If you have any questions about how to receive proper tax credit for your donations through 2014 contact one of our experienced tax advisors for detailed information about substantiation. You should also know that certain donations require additional substantiation. Our tax advisors, and CPAs can guide you through any questions you may have about receiving full tax credit for the 2014 tax year, and help you plan for the 2015 tax season now.