Jump directly to the content

Defective Charitable Contribution Receipt from Church Bars Donor's Deduction

Key point. Taxpayers are subject to substantial penalties for not filing a tax return (if one is required) and for reporting inaccurate information on a tax return. Some taxpayers view the risk of being audited as so low that they deliberately underreport income, overstate expenses, or adopt questionable interpretations of the tax laws. You should bear in mind the following penalties before adopting aggressive tax positions.

The United States Tax Court ruled that a taxpayer was not entitled to deduct charitable contributions made to her church because the church's receipt was defective. A taxpayer made several donations to her church in 2009, many of which were for more than $250. The donations were recorded in the church's financial records. In 2014, after the IRS audited the taxpayer's 2009 tax return and questioned contributions of $250 or more that she had made to her church, the church ...

Log In For Full Access

Interested in becoming a member? Learn more.

Related Topics:
Posted:
  • February 23, 2016

Related ResourcesView All

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Talking to Your Congregation About Money
Talking to Your Congregation About Money
Helpful insights on talking about money and encouraging people to become generous givers.
Charitable Contributions Bulletin Inserts
Charitable Contributions Bulletin Inserts
Help your members give more by answering their charitable giving and tax law questions.
Church Fundraising Campaigns
Church Fundraising Campaigns
Discover tips on raising and borrowing money.