Important Details: Church's Error in Documentation Costs Taxpayer $7,552 Dollars

When it comes to the tax laws governing charities, the details matter. 

As reported on our firm’s newsfeed, in a recent United States Tax Court case, the tax judge disallowed deductions for over $22,000 in charitable giving due to noncompliant documentation from the recipient church.  Because the contributions were disallowed as deductions, the donor’s IRS-determined deficiency of $7,552 was upheld. 

Nonprofits Take Note: US Supreme Court Upholds Free Speech Rights for Organizations Receiving Federal Funding

Yesterday, the Supreme Court, in Agency for Int'l Development v. Alliance for Open Society Int'l, held unconstitutional a federal program that granted funds to participant organizations conditioned on expressly declaring their opposition to prostitution. The decision will likely have free speech and policy implications on nonprofits that receive federal funding as part of their programming budgets.