The IRS is warning taxpayers to be cautious of increasingly aggressive charitable contribution tax strategies that promise significant deductions but may cross into abusive territory.
In particular, schemes involving “charitable LLCs” or similar structures often allow donors to appear to make a contribution while still maintaining control or access to the assets—an arrangement the IRS has flagged as potentially fraudulent. These transactions are drawing heightened scrutiny and could result in denied deductions, penalties, or even criminal consequences.
In this article, we break down how these schemes work, the red flags to watch for, and how to ensure your charitable giving remains compliant and defensible.
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