Charity Donate

Pension Protection Act Remains Unaffected for 2009

Posted on 16. Oct, 2009 by Charity Donation in Charity Donate

The Pension Protection Act of 2006 that contained some strict rules for donations after 70 years of age is extended through 2009 as well. As per the rules of the act, the taxpayer needs to maintain the records for any cash donations made by him or her. This means that a receipt from the recipient charity or a bank statement as the evidence for the donation must be kept in records by the donation. Though, it is not mandatory to attach a copy of the donation receipt while filing the annual tax documents with IRS, but it must be with you to face a surprise IRS audit.

As far as non-cash charity donations are concerned, the Pension Protection Act provides guidelines for the same as well. According to the law, the donated cars, clothes and other things must be checked for being in good condition, in order to enjoy the tax deduction. So, the tax filers who try to earn tax advantage by donating rundown possessions are no more eligible for doing so.

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