FEDERAL TAX POSTS FOR JUNE 11

Taxpayers who itemize deductions on their tax returns may get a tax benefit by donating money and items to qualified organizations, if they can prove the donations. In one case, the IRS denied some of the charitable deductions claimed by an aerospace engineer and his consultant wife due to inadequate proof, and the U.S. Tax Court agreed. The couple donated money to their church, but instead of receipts, they submitted calendar entries with few details. They also donated household items but failed to adequately address the condition of the items. (TC Memo 2018-75)

Individuals can generally roll over funds from one IRA into another within 60 days, tax-free. If the deadline is missed for reasons outside of the accountholder’s control, the IRS may waive the penalty. One taxpayer took a lump-sum IRA distribution in Jan. 2017 and relied on her spouse, who misinformed her that she had until the end of 2017 to complete the rollover. In a Private Letter Ruling, the IRS concluded “without much elaboration” that the documentation and information provided by the taxpayer supported that claim, and it waived the penalty. (PLR 201822033)