Charitable taxpayers will want to be diligent about donating for international causes, such as the tremendous disaster that has struck Japan. Charitable donations can generate a tax deduction, but only if the charity has received tax-exempt status from the IRS. Joanne Fritz, About.com's Guide to Non-Profits, provides some very helpful tips for preserving your ability to take a tax deduction when giving internationally. Bridget Johnson, About.com's Guide to World News, highlights seven reputable charities through which you can providehelp to Japan.
The Internal Revenue Service has highlighted two common concerns donors often consider when donating funds for disaster relief efforts in Publication 3833:
"FEDERAL TAX LAW--Under Federal law, an existing qualified charity generally must be given full control and authority over the use of donated funds, and contributors may not earmark funds for the benefit of a particular individual or family. Contributions to qualified charities may, however, be earmarked for flood relief, hurricane relief, or other disaster relief.
"STATE LAW CONSIDERATIONS--Some contributors are reluctant to contribute to an existing umbrella organization with many programs. They are concerned that their donations will not be spent directly to serve the victims of the particular emergency they wish to help, and instead, will be applied to other organizational expenses. To address these concerns, many states and local authorities that regulate charitable solicitation rules have imposed regulations that provide that, if a charity represents that funds will be used for the relief of the victims of a particular disaster, the funds may not be used for other programs of the organization. Charitable organizations and contributors should be aware of the solicitation rules that may apply in their particular jurisdiction."
"STATE LAW CONSIDERATIONS--Some contributors are reluctant to contribute to an existing umbrella organization with many programs. They are concerned that their donations will not be spent directly to serve the victims of the particular emergency they wish to help, and instead, will be applied to other organizational expenses. To address these concerns, many states and local authorities that regulate charitable solicitation rules have imposed regulations that provide that, if a charity represents that funds will be used for the relief of the victims of a particular disaster, the funds may not be used for other programs of the organization. Charitable organizations and contributors should be aware of the solicitation rules that may apply in their particular jurisdiction."
Donors can verify whether a charity is legitimate by searching the list of tax-exempt organizations found on the IRS Web site.
The IRS estimates that some $1.1 billion in refund money is waiting to be claimed by people who have forgotten to file a tax return for the year 2007. "However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011," the IRS advised in their news release.
Taxpayers only have three years to claim a refund of overpaid taxes. If you miss the deadline, any tax refund expires. Or as Accounting Web smartly phrased it, "IRS looking at $1.1 billion windfall if 2007 returns miss the filing deadline."
If you need help tracking down W-2s and other tax documents, you can obtain a printout of various income records at your local IRS taxpayer assistance center. Forms and instructions for the year 2007 can be obtained either by searching through the IRS prior year forms page or by browsing their year 2007 forms archive.
When filing a late tax return, you'll need to mail in the tax return to the IRS for manual processing, and I very highly encourage people to use certified mail so that you'll have a receipt proving that the IRS received your tax return before the 3-year refund deadline expires.
