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Ask Legalease Your Own Question
Legalease, Lawyer
Category: Legal
Satisfied Customers: 16378
Experience:  15 years exp all aspects of general law
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I wanted to aska couple of questions before I respond to an

Customer Question

I wanted to aska couple of questions before I respond to an IRS Examination letter to review my charitable contritutions for 2009. My 2009 (and 2008) returns have charitable contributions that I can't support with documentation. Our income was approx $212,000, and I reported $9,095 in cash and $1,958 in goods on the 2009 return. I have receipts for the goods, but can only support $3,016 in cash donatoins with receipts. I calculated cash donations at another $1620 ($30 per week in the collection plate), but again that is without receipts. I admit that I "fluffed" on my return, but would like to avoid further investigation (i.e 2008 return) and/or criminal investigation. How should I submit what I have collected, and should I submit a letter with some explanation?
Submitted: 6 years ago.
Category: Legal
Expert:  Legalease replied 6 years ago.

My suggestion is to be as honest with them as you can with everything that you have and write up the list of deductions to include everything that you took as a deduction and why you took that as a deduction. Obviously, you do not have receipts for every deduction but if you can show why you took the deductions ( as I said, prepare a long list listing each deduction, the amount and the reason it was taken) and then simply enclose a letter telling them that some of your records were lost or destroyed in a flood or some other such bad weather that took place in your area during the previous year. Then you simply wait for IRS to disallow everything you deducted that you do not have appropriate documentation to support and you make arrangements with them to pay the outstanding amounts due after they review the proof that you DO have. If you have had no prior issues with them then it is likely that they will accept the "missing documentation" excuse and let you pay the monies -- but you will have to be more careful in the future because that generally only works once.




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Legalease and 2 other Legal Specialists are ready to help you
Customer: replied 6 years ago.
As a general rule, does the IRS typically "dig" further if the documentation doesn't support the deductions, or do they more or less settle the examination and move on?
Customer: replied 6 years ago.
As a general rule, will the IRS " typically "dig" further if teh documentation doesn't support the deductions, or do they more or less settle the examination and that's teh end of it?
Expert:  Legalease replied 6 years ago.

In my experience, if they have no further reason to suspect wrongdoing, they will simply recalculate the deduction and the tax and send you a bill for what you owe to them.




Customer: replied 6 years ago.

I'd like to ask one more question. I've been able to work the numbers to show a little over $8,000, but my claims were $11,000. I'd like to say taht I gave $3,000 to a relative in need, but would not want to disclose any other information, but would be willing to adjust that claim amount. I can't think of a way to account for the other $3,000. Ideas?


For the record, we did lose years of records in a hurricane in 2008.

Expert:  Legalease replied 6 years ago.

While the bible tells us that charity begins in the home, unless the relative has a non-profit number, its not deductible, period. I think that the charity must have a non-profit number is a widely known fact and the IRS would probably expect you to know that may work against you if you try to claim that you gave the money to a relative. But I am out of ideas on such a large sum of money that cannot be accounted for as charitable donations. Perhaps it was part of a few different categories and you simply just came up short on the receipts overall for each category because you lost a box or two of your records in the hurricane.



Customer: replied 6 years ago.
thanks for your help.
Expert:  Legalease replied 6 years ago.
Good Luck