Charitable Contributions Audit Concludes with No Additional Tax Due

Monday, March 16, 2015


M. Robinson & Company, P.C. represented a married couple in an IRS tax audit of the couple’s charitable donations in 2012 and 2013.  The couple made more than 100 donations by check or credit card in each of the two years.  We obtained the couple’s bank and credit card statements and the letters from the charitable organizations stating that no goods or services were provided in exchange for the donations.  In some instances the letters were missing from the couple’s files, so we contacted the charities and obtained copies of the missing letters.  A careful review of the couple’s donations showed that they actually donated about $500 more than they had claimed on the tax returns.  The IRS concluded the audit in March 2015 with a “no change” letter, meaning that no additional tax or penalties were due.