January 29, 2021
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.