Haiti Charitable Contributions P.L. 111-126

Congress has passed legislation designed to encourage charitable contributions for the relief efforts in Haiti. The President signed it into law January 22, 2010. Under the new law, taxpayers may deduct charitable contributions made for the relief of earthquake victims in Haiti on their 2009 tax return rather than wait to deduct it on their 2010 return.

Observation: The language in the law indicates this is an election and not a requirement. The election is made by simply deducting the contribution on the 2009 return.

Qualifications: The deduction is allowed on the 2009 return if all of the following conditions are met:

• The contribution is made after January 11, 2010 and before March 1, 2010.
• The contribution is a cash contribution. (Contributions of food and clothing are not cash contributions.)
• The contribution is made for the relief of victims in areas affected by the earthquake in Haiti on January 12, 2010.
• All other requirements for deducting cash contributions under Section 170 of the Internal Revenue Code are satisfied. (Example: The contribution has to be made to a qualified charitable organization.)

Recordkeeping. For purposes of the above rules, a telephone bill showing the name of the donee organization, the date of the contribution, and the amount of the contribution is treated as meeting the recordkeeping requirements of IRC Section 170(f)(17).