The U.S. Department of the Treasury and the Internal Revenue Service today issued final regulations that require taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. In a notice also issued today, the IRS stated that taxpayers may treat payments they make in exchange for these credits as state or local tax payments. This allows some taxpayers to deduct certain of the payments as taxes. More details about these regulations are included in today’s IRS Tax Advisory.
If you have questions about these or any other new IRS regulations, your tax advisor at Sharrard, McGee & Co., PA has the answers. Call us at (336) 884-0410 in High Point or (336) 272-9777 in Greensboro.