Contributing to Charity? Wondering about the Organization's Tax-Exempt Status?

The IRS just launched a new online search tool, "Exempt Organizations Select Check,” to help taxpayers more easily find key information about tax-exempt organizations, such as federal tax status and filings.

By using the tool, you can check if the organization:

· Is eligible to receive tax-deductible charitable contributions. This used to be done using IRS Publication 78, which is incorporated in the new tool. Taxpayers can rely on this list in determining deductibility of contributions (just as they did when Publication 78 was a separate electronic publication rather than part of EO Select Check).

· Has its federal tax exemption automatically revoked under the law for not filing a Form 990-series return or notice for three consecutive years. (This is known as the "Auto-Revocation List.”)

· Has filed a Form 990-N (e-Postcard) annual electronic notice. (Most small organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, unless they choose instead to file a completed Form 990 or Form 990-EZ.)

EO Select Check also offers new search functions. For example, users can now look for organizations eligible to receive deductible contributions by Employer Identification Number (EIN), which was previously not a searchable or sortable field in the electronic Publication 78. And information about organizations eligible to receive deductible contributions is now updated monthly, rather than quarterly.

To access the tool, visit http://apps.irs.gov/app/eos/.

In addition, organizations that have automatically lost their tax exemptions can now be searched by EIN, name, city, state, zip code, country, exemption type, and revocation posting date, rather than only by state. EO Select Check also provides new pop-up help text to assist users in understanding the significance of auto-revocation search results, including the meaning of, and distinctions between, revocation dates and revocation posting dates.

Facts about Charitable Contributions

· Charitable contributions are deductible only if you itemize deductions.

· To be deductible, charitable contributions must be made to qualified organizations.

· Payments to individuals are never deductible.

· If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.

· For a contribution of cash, check, or other monetary gift (regardless of the amount), you must keep a bank record or a written communication from the qualified organization containing the organization name, the date of the contribution, and the amount.