Taxes- The Tax Magazine
Effective January 1, 1994 the substantiation and reporting requirements for charitable contributions will be significantly increased. Two provisions in the Revenue Reconciliation Act of 1993 (the "Act") result in these additional requirements. The first provision, under Section 6115, requires charitable organizations to disclose certain information to the donor via a written statement for any quid pro quo contribution received by the organization which exceeds $75. The second provision, under Section 170(f)(8), requires the donor taxpayer to obtain from the donee organization written substantiation for any contribution of $250 or more. Substantiation will not be required if the donee organization files a return including all relevant information with the Internal Revenue Service (Service). Both of these provision, along with current provisions dealing with reporting and substantiation requirements for charitable contributions, are discussed below.