Beginning in 2010, the Panera Bread Foundation, a non-profit related to the popular restaurant chain, piloted a limited experiment in the "gift economy," whereby customers could "pay it forward" or "pay-what-you-can" at select cafes. The experiment, unfortunately, failed due to lack of financial viability. In a double-hit, the Internal Revenue Service (IRS) now claims the experimental cafes owe back taxes to 2012 on annual revenues exceeding $7.5 million.
If you regularly claim deductions for donations, you may need to update your tax record keeping practices --- the Internal Revenue Service (IRS) issued final regulations this summer concerning the correct way to substantiate any charitable contributions you wish to deduct. Under Section 170(f)(8), for contributions of $250 or more, the recipient organization should provide you a receipt at the time of the contribution that shows:
November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.
The Internal Revenue Service (IRS) has issued a warning about possible fake charity scams related to the effects of Hurricane Harvey. Taxpayers should be sure the charities they want to support are recognized by the government to accept donations. Don't let your compassion get the best of you - be careful who you send your money and information. The IRS offers the following tips to help you protect your interests while also supporting causes you care about: