A newly passed law will allow taxpayers to claim donations for relief of the victims of the Indian Ocean tsunami made during January on their 2004 tax returns, according to the Internal Revenue Service.
The new law enacted on Jan. 7 allows these donations to be deducted as if they were made on Dec. 31, 2004.
"There are no extra forms to fill out or any additional burdens for taxpayers," said IRS commissioner Mark W. Everson. "As long as you write your check by the end of the month, the donation will be treated just like it was still 2004."
The new law only allows for cash contributions. The contributions must be made specifically for the relief of victims in areas affected by the Dec. 26, 2004, tsunami in the Indian Ocean. The new law gives taxpayers the option of deducting the contributions on either their 2004 or 2005 returns, but not both.
The IRS advises taxpayers to be sure their contributions go to qualified charities. Taxpayers who have a specific charity in mind can make sure that it is a qualified charity by doing a search on IRS.gov.
Some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov. For information on groups involved in tsunami relief, donors can also look to the USAID site at: www.usaid.gov/locations/asia_ne-ar_east/tsunami/ngolist.html.
According to the IRS, contributions to foreign organizations generally are not deductible.
When donors make contributions to assist the victims of the tsunami, the IRS recommends they note their records to that effect. Donors may want to note the memo field of checks they send that it is a contribution to help tsunami victims.
