The IRS may soon release final rules on charitable contributions and state and local tax credits.
The guidance left the White House’s Office of Information and Regulatory Affairs on May 31, according to the office’s website.
- The OIRA also sent back to the Treasury Department a notice regarding tax code Section 164 and Section 170(c). Taxpayers can get tax deductions for making charitable contributions, which are defined in Section 170(c).
- The 2017 tax law capped state and local tax deductions at $10,000. The Internal Revenue Service in August 2018 proposed guidance to invalidate state workarounds involving charitable donations in exchange for state tax credits.
- An IRS official said in March that the agency was considering rules to invalidate remaining workaround strategies in states like New York and Connecticut.
The OIRA received both sets of guidance on March 22, according to the website.