Tax Tip of the Week: IRS Declares War on Charitable Contributions

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Audit flagsOne of my clients was recently selected by the IRS to have his tax return audited because he had a higher-than-average contribution deduction on his tax return. This is not me just making an assumption – this is what the IRS auditor told me. To be accurate, she said, “We have been auditing a larger number of high donor tax returns lately.”

When this is combined with the IRS auditing more charitable organizations, what other conclusion can you reach? Why would the IRS declare on charitable contributions, you ask? Well, my opinion is that “rich” taxpayers helping the less fortunate doesn’t fit with the extreme liberal agenda where BIG GOVERNMENT is responsible for taking care of all us. How dare we co-op the government’s job!

Whether my opinion is right or not is immaterial. If you deduct donations on your return, be warned – you are now a target for an IRS audit.

So what should you do? Well you can just stop donating. But this would just be giving in to the big bully. Instead, I would recommend that you continue (or even increase) your good work and donations. But be prepared to prove your deductions. Check out some of our prior blog articles on how to document charitable donations and how to win if challenged by the IRS:


Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.