In the past the IRS has cracked down on donors of cars in bad condition to charity. Who are the latest charitable tax dodgers that the IRS is casting its lines for?
According to a tip from Marketwatch, the IRS is eyeing donor-advised funds as the next charitable-cheating scheme. When used correctly, donor-advised funds allow donors to control how a charity uses their money without incurring the expenses of a foundation. However, the IRS is concerned that some are using these funds for personal gain. For example, a person could give to a university, and then designate the funds to be used for financial aid for his or her child. The IRS intends to nip this in the bud.
Unfortunately, everyone loses from these money-laundering schemes. Genuine philanthropists might be frightened to use donor-advised funds as a legitimate and flexible tool for directing their donations, and then charity loses out. This is a shame.
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http://www.wisegeek.com/what-is-personal-tax-earmarking.html
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