South Carolina Tax Attorney

    A good many of my clients give a substantial amount of money to their churches or other charitable organizations and want to know if they can get credit for that as an allowable expense. Many people give a lot of money to their "religious institution" each month either because it is "required" by their religion or they just want to.

    If the IRS gives credit for this expense each month, then it would put a lot of taxpayers in a more favorable light in the offer in compromise process.  However, the IRS generally will not allow any charitable donation as an allowable expense for purposes of negotiating an offer in compromise. 

    So, bottom line, if you’re in good graces with the IRS you may generously give charitable donations to reduce your taxable income each year so you owe less in income tax, but if you are in a quagmire with the IRS and owe them a lot of money, don’t expect them to be very sympathetic when you tell them you can’t afford to pay anything on your taxes (or your estimated taxes each quarter to stay current) because you have are giving money to the charitable organization of your choice.

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