IRS Warns Taxpayers to Beware of Tax Schemes Involving Donations
The IRS has recently issued a warning to taxpayers about new types of charitable donation scams. Scammers are targeting high-income taxpayers, encouraging them to create Limited Liability Companies (LLCs) and transfer cash or other assets into the LLCs, then donate most of the non-voting, non-managing membership units to false charities.
Although taxpayers may deduct qualified charitable contributions of taxable income, scammers may lure taxpayers into fraudulent plans involving false charitable deductions. Taxpayer should beware of this kind of scam. Additionally, taxpayer should also be cautious of organizations requesting donations in cryptocurrency or gift cards.
To properly claim deductions for charitable contributions, taxpayers must maintain the following records:
- The name and address of the charitable organization.
- The date of the contribution.
- A detailed description of the donation.
USCPA Sophie Luo (羅霞) reminds you that donations to charities outsides the U.S. are not deductible for U.S. tax purposes. If taxpayers would like to donate in the U.S., please ensure donations are made to legitimate U.S.-based charitable organizations.
If you have any questions or need further help,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
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