IRS alerts taxpayers to charity scams after recent hurricanes and offers tools to verify legitimate organizations.

Sai CPA Services is pleased to share the new IRS information on alerting taxpayers about charity scams. The warning to taxpayers about charity scams has come in the wake of recent hurricanes, emphasizing the importance of verifying legitimate charities before making donations.

Background?

• Recent Hurricanes: The warning follows Hurricanes Milton and Helene.?

• Scammers’ Tactics: Scammers often exploit natural disasters to create fake charities, aiming to steal money and personal information from well-meaning donors.?

Tips to Avoid Fake Charities?

• Verify Legitimacy: Use the IRS’s Tax-Exempt Organization Search (TEOS) tool to:?

• Confirm the charity’s legitimacy.?

• Check eligibility for tax-deductible contributions.?

• Access information about the organization’s tax-exempt status and filings.?

• Caution with Donations:?

• Avoid charities requesting donations via gift cards or wire transfers.?

• Prefer donations via credit card or check, but only after verifying the charity.?

• Protect Personal Information:?

• Do not share Social Security numbers, credit card numbers, or personal identification numbers.?

• Be wary of charities that pressure you into making immediate donations.?

• Research and Confirm:?

• Ask for the charity’s name, website, and mailing address to independently verify its authenticity.?

• Be cautious of emails, fake websites, or altered caller IDs that mimic real charities.?

Additional Resources?

• FBI Resources: The IRS encourages reporting suspicious charities to the FBI’s resources on Charity and Disaster Fraud.?

• Claiming Deductions: Donations are tax-deductible only if made to qualified tax-exempt organizations recognized by the IRS.?

Conclusion?

The IRS stresses the importance of due diligence when donating to charities, especially in the wake of natural disasters.?By using tools like the TEOS and following the provided tips, taxpayers can protect themselves from scams and ensure their contributions go to legitimate causes.?

For more Information and Guidance, please contact Sai CPA Services.?