Alisobhani v. Commissioner, T.C. Memo. 1994-629 (1994)
Background. Church members sometimes make contributions directly to religious organizations or ministries overseas. Or, they make contributions to a United States religious organization for distribution to a foreign organization. Are these contributions tax-deductible? That was the issue addressed by the Tax Court in a recent ruling.
The Tax Court ruled that a taxpayer who sent contributions to a mosque in his family's home town in Iran was not entitled to a charitable contribution deduction. The Court noted that to be deductible a charitable contribution must go to a charity organized in the United States.
Importance to church treasurers. Federal law specifies that a charitable contribution, to be tax-deductible, must go to an organization "created or organized in the United States or in any possession thereof." In addition, the organization ...