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Oct 24 2012
Concern for Public Debt

Posted in general

"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.

Although there is more than one way to reduce the debt, many people feel that it will take a strong economy AND prudent government spending to create a budget that will allow for debt reduction.

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Last Updated by Mike on 2012-10-24 07:04:16 AM

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.