House unanimously passes bill to expedite tax deductions for Haiti contributions

On Wednesday, the House of Representatives stepped back from their busy schedule and did something nice for the victims of the recent Haiti earthquake devastation. If the House bill becomes law, donations made to U.S.-based tax-exempt charities supplying relief to Haiti victims between January 12 and February 28, 2010 can be deducted on 2009 income tax returns.

The Senate Finance Committee has introduced similar legislation and it is expected to pass, perhaps as soon as today. “This legislation is an additional incentive for Americans to contribute,” said Finance Committee Chairman Senator Max Baucus, a Democrat from Montana, in a statement.

Because current law requires taxpayers to be able to provide documentation for any contribution deductions, the legislation contains a provision for people to use their phone records as documentation to support texted donations for Haiti relief made from their cell phones. The American Red Cross has been using this texting feature to collect money in $10 increments for the relief effort. To date they have raised more than $8 million just through people texting "Haiti" to 90999. The contributions are charged to the cell phone bills.

This is not the first time that Congress has allowed this type of deduction. In early 2005, Congress voted to allow contributions to tsunami victims as deductions on 2004 income tax returns.

Related articles:

Voice of the Editor

What would you do if one of your clients won the lottery? We asked several accountants to weigh in with their advice for the lucky Powerball winner, and the tips we received are useful for anyone who receives a windfall, whether it's a lottery win, an inheritance, a big bonus on the job, or a killing in the stock market.
ADVERTISEMENT

This Week on AccountingWEB

CPAs Mira Finé, Scott Hitchcock, Rob Keasal, Kathy Scorcio, and Ken Travis offer ten pieces of financial advice for the newest Powerball winner.
Hang Bower of BDO USA and Dan Black of Ernst & Young share their perspectives on why their firms made the Best Places to Work for Recent Grads 2013 list.
Herbein + Company, Inc. firm members talked with AccountingWEB about their year-round employee wellness program.
Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT