← FarmCPA Home

Don’t Forget the “Magic Blurb” on Donation Acknowledgements!

By: | Trackback URL | No Comments

February 13th, 2013

We came across this blog from the Internet and it is a great reminder for all of us that will be getting charity donation acknowledgements between now and when we file your tax return.  In order to claim a charity donation, you must get a written acknowledgement from the charity and retain in your files before you file your tax return.

It is important for this acknowledgement to have the “magic blurb” as follows:

No goods or services were provided in exchange for your donation (or similar wording). 

Without this statement, the IRS, if they audit your return, are allowed to completely deny your charitable donation even if you have a cancelled check and the letter from the charity.  There have been several court cases where the IRS has won and disallowed the donation simply due to the omission of this statement from the charity.

If you get one of these letters this year without this wording, please call the charity and have them reissue it in the proper form and let them know that they need to update their system accordingly.  This simple mistake can be very costly.

Paul Neiffer, CPA

Paul Neiffer

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

More Posts - Website

Follow Me:
Twitter

← FarmCPA Home

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to this blog by:

Previous Posts

Events

View upcoming speaking engagements and other networking events for Paul Neiffer and CliftonLarsonAllen’s agribusiness team.

See All

  • Twitter Feed

    Just saw a bighorn sheep eating grass in the bank next to the freeway. Less than 30' from my car. 4 days ago

    After 82 days in a rental car my wife has talked me into a cruise. We leave Thursday for Miami. Can't wait 5 days ago

    Will final ear weights set a new record. If so final corn yield will be going higher (unless we get an early hard freeze) 1 week ago

    Getting Train the Trainer info on the new Dairy Margin Protection program today in Denver. Learning a lot so far 1 week ago

    Has the chatter on an early freeze disappeared or is it just dormant 1 week ago

    Ag Economy; Policy Issues; and, Political Notes: farmpolicy.com/2014/09/05/ag-… 2 weeks ago

    Nothing prettier in August than to see rain water on the ground. At least the crops like it 3 weeks ago

    If tenants have compensated landlords fully for cash rents over the last few years, it will be much easier to get them to accept lower rents 3 weeks ago

    Is this Russia / Ukraine a case of buy the rumor / sell the news 3 weeks ago

    Nice rain and warmer temps yesterday should make good growing conditions 4 weeks ago