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"The IRS responded in a general information request that the Treasury Department may accept gifts of money or other property to reduce the public debt that are deductible to the contributor if the requirements under IRC Sec. 170(f) are satisfied. The Treasury Department is required to place the funds in a special account to be dispensed only for the purpose of public debt reduction. As with other charitable contributions, the donor must maintain a record of the contribution and substantiate contributions of $250 or more by contemporaneous written acknowledgement. The Bureau of Public Debt ordinarily provides the acknowledgement to the donor within two weeks after it receives the contribution."
What this means is that individuals and corporations who feel strongly about reducing the debt the United States continues to accumulate can now make tax deductible charitable contributions to the Treasury Department specifically to reduce the debt.
It will be interesting to see where people fall on this. Many people I speak with despise the national debt and have would enjoy the tax break. But at the same time, charitable giving is often done to benefit an organization and make a difference for that organization, whether big or small.
Will numerous small gifts to the Treasury for debt reduction make a tangible difference. It seems doubtful given that even substantial gifts from the wealthiest Americans would make little impact.
Last Updated by Mike on 2012-10-24 07:04:16 AM