Recordkeeping for Payroll Deduction Contributions

Essential Recordkeeping Tips for Payroll Deduction Contributions

To satisfy stricter substantiation requirements for charitable contributions that were enacted by P.L. 109-280 and are now reflected in Code Sec. 170(f)(17), IRS stated that for contribution through payroll deduction, employer-furnished document (pay stub, Form W-2) and pledge card from donee org will be treated as “written communication from donee" that meets Code Sec. 170(f)(17) requirements. Enhanced substantiation rules apply to contributions made in tax years beginning after 8/17/2006, and taxpayers can rely on this guidance until it is incorporated into future regs. ( Notice 2006-110, 2006-51 IRB )

Ensure compliance with IRS rules—let REED TINSLEY, CPA help you navigate the complexities. Contact us today for expert guidance.

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Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

Recordkeeping for contributions made through payroll deductions

Written by Reed Tinsley, CPA | December 5, 2006

Essential Recordkeeping Tips for Payroll Deduction Contributions

About the Author

Reed Tinsley CPA

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