The Internal Revenue Service issued a reminder that exempt organizations must file returns electronically for the tax year ending on or after December 31, 2006 if they have $10 million or more in total assets and file at least 250 returns in a calendar year, including income, excise, employment tax, and information returns. In addition, the IRS has outlined new record-keeping requirements for individuals claiming charitable deductions for monetary gifts made in taxable years beginning after August 17, 2006 (for calendar year taxpayers, this new rule would begin January 1, 2007). Besides keeping a copy of the bank record for the contribution, individuals also need written communication from the donee organizations detailing the date of the contribution and amount. If contributions are made by payroll deductions, individuals must retain a document from an employer substantiating the deduction, and they must have a pledge card or written communication from the donee organization that includes a statement that the organization does not provide goods or services in consideration for the contribution.
