Return to Tax Industry News
 

Post Date:  4/8/2015
Last Updated:  4/8/2015

Summary
Cross References
- Public Law 114-7

On April 1, 2015, the President signed into law H.R. 1527 which allows a charitable tax deduction for cash contributions made for the relief of the families of slain New York Police Department Detectives Wenjian Liu and Rafael Ramos even if the contributions are made for the exclusive benefit of the detective's families. A taxpayer who makes such a contribution may claim a deduction in 2014 for contributions made between January 1, 2015, and April 15, 2015. The law also provides that the recordkeeping requirements for the charitable tax deduction will be satisfied if the taxpayer produces a telephone bill showing the name of the organization to which a contribution was made with the date and amount of the contribution.

The law also confirms that payments made on or after December 20, 2014, and on or before October 15, 2015, to the spouse or any dependents of Detectives Wenjian Liu or Rafael Ramos by a tax-exempt organization will be treated as related to the purpose or function constituting the basis for such organization's tax exemption, and shall not be treated as inuring to the benefit of any private individual, if the payments are made in good faith using a reasonable and objective formula which is consistently applied.


Print Version:  Click here for a printable version of this document.