As we approach the end of 2020 you may be thinking about donating to one of Montana’s charities. Your donation helps these organizations provide critical services and this year many need your help.
In addition to helping charities, your donation can earn a tax deduction. It is critical that you have the correct documents with the correct language for your donation to qualify. IRS rules require that the correct documentation be obtained before the earlier of:
a. The date you file your return for the year you make the contribution; or
b. The due date, including extensions, for filing the return.
The impact of this is incorrect documentation cannot be obtained after you file the return. For donations of $250 or more you are required to have acknowledgement that includes:
1. Your name and address
2. Charity name and address
3. Amount and date of each donation
4. Statement that donor either did or did not receive any goods and services as a result of the contribution
If you need assistance on this or any other tax issue, please contact a CPA. To find a CPA in your area please visit http://www.mscpa.org.
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