IRS Issued Final Regulations on Payments to Charitable Entities

• February 08, 2021

• Chris Meskimen , Deloitte Tax LLP
• Kristina Rasmussen , Deloitte Tax LLP
• Edward Gershman , Deloitte Tax LLP

On August 11, 2020, the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) published final regulations under sections 162, 164, and 170 (Final Regulations) to the Federal Register. The final regulations are effective as of August 11, 2020. The Final Regulations largely adopt the safe harbor rules set forth in Proposed Regulations, Rev. Proc. 2019-12 and Notice 2019-12 regarding:

• The treatment of a payment to a charitable entity described in section 170(c) (a “section 170(c) entity”) made by a business entity, and
• The treatment of a payment to a section 170(c) entity made by an individual with total state and local tax (SALT) liabilities that were less than or equal to the section 164(b)(6) limitations.

ARTICLE TAGS

• Tax and Finance Practice Group
• Tax and Nonprofit