December 05, 2006

New Recordkeeping Required for Charitable Contributions by Payroll Deduction

The IRS released new recordkeeping requirements for Charitable Contributions by Payroll Deduction.
Notice 2006-110 provides guidance on how charitable contributions made by payroll deduction may meet the new recordkeeping requirements of section 170(f)(17), added by the Pension Protection Act of 2006. This new provision requires a taxpayer to maintain a bank record or written communication from the donee showing the name of the donee organization and date and amount of the contribution.