Tax tips to keep you on your toes

Charitable deductions and the vehicles that generate them continue to land on the IRS’s radar. 

For instance:

  • The IRS is really, really picky about requiring a charitable deduction to be calculatable as a true “sum certain,” as the taxpayer in a recent tax court case found out the hard way.
  • The IRS appears to be doubling down on exempt purpose requirements for 501(c)(3) organizations. Keep these rules in mind, especially as you counsel clients who are involved with starting a new charity. 
  • The IRS is taking a close look at sketchy charitable remainder trusts in conjunction with its Dirty Dozen focus areas. As always, if a tax structure seems too good to be true, watch carefully for red flags and do your homework on the IRS’s positions.

Whidbey Community Foundation is here to help! We are always tracking the latest news and trends with charitable giving and our team is happy to help you as you serve your charitable clients.  

Whidbey Community Foundation is a resource and sounding board as you serve your philanthropic clients. We understand the charitable side of the equation and are happy to serve as a secondary source as you manage the primary relationship with your clients. This is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.