Tax News Update    Email this document    Print this document  

January 29, 2021
2021-0222

IRS provides recordkeeping relief for corporations making charitable contributions before February 1, 2021, to aid disaster areas

The IRS has announced (IR-2021-27) that corporations making cash contributions before February 1, 2021, benefitting relief efforts in qualified disaster areas will not be required to submit contemporaneous written acknowledgements (CWAs) that include "disaster relief statements." The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA) temporarily increased the limit of a corporation's taxable income (up to 100%) that may be offset by a charitable deduction for cash contributions made to benefit relief efforts in qualified disaster areas. Under the TCDTRA, the CWA that the donor receives for the contribution must include a disaster relief statement.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement