The IRS has opened up a new, potentially lucrative line of inquiry to determine whether to grant a charity’s charitable deduction.
The agency is considering issuing a tax-free charitable deduction of up to $5,000 for the first year of an individual’s taxable income, according to an agency document obtained by Vice News.
The filing is part of a broader effort to streamline the process of collecting charitable deductions, including those for qualified charities.
The IRS said it is currently working on the guidelines, which would not be finalized until next year.
The IRS has historically issued only a single tax-deferred charitable deduction per tax year for most taxpayers.
Under current rules, those are limited to a maximum of $5.8 million per year for individual taxpayers and $10.5 million for married couples filing jointly.
But the IRS has said it may be open to issuing additional tax-exempt charitable deductions for 2017, including up to a total of up the $5 million per deduction for individual and married taxpayers.
The deduction could allow a charitable organization to deduct donations made by employees, vendors, volunteers, or others.
In its 2017 filing, the IRS said that the agency is “evaluating” whether to extend the deduction.
It noted that the current tax code “provides a tax benefit of up a maximum amount of $10,000 per person for each individual taxpayer for each year of taxable income for the taxpayer in question, regardless of the amount of taxable property, real estate, or other personal property that is donated to the organization.”
It noted that “the current maximum amount is not indexed to inflation, so it is unclear whether it is indexed for inflation.”
The IRS is expected to begin releasing more detailed information about the 2017 tax-break filing in late February.
The IRS previously granted tax-qualified charitable deductions in 2012 and 2015, but those have been phased out for 2016.
The agency is also considering expanding the number of tax-deductible charitable deductions it will offer in 2017, but that could take months or even years.
The tax-advantaged charitable deduction is one of the most significant tax benefits that taxpayers receive for charitable giving.
The Internal Revenue Service also said it was working on rules for the charitable deduction this year.
The rule, which was proposed in 2012, is expected by early 2019.
The plan is expected not to require an individual or a married couple to provide information about their tax filing status or income.
It is unclear how the IRS will determine whether a charitable donation is tax-eligible, whether it will be taxable and how much it will cost.
Taxpayers who make donations to qualified charities or organizations will generally have to report the amount to the IRS, and if the organization does not comply with certain reporting requirements, the taxpayer will be subject to a fine.
The Tax Foundation, a nonpartisan nonprofit tax-research organization, has criticized the IRS for allowing nonprofits to deduct the full amount of donations made to them, even though the tax code prohibits them from deducting all of the donation.
It said in a 2016 report that the tax-code “does not require nonprofit organizations to report all their charitable donations, and many don’t even bother reporting any.”
It also said that nonprofits can use tax-preferred forms, which allow the organization to claim deductions on a tax return even if the IRS does not require it to do so.
The organization said that, as a result, the tax break could be used to pay for things like housing, food, clothing, education and medical care for nonprofits.
The tax-writing agency has faced a backlash in recent months over its handling of tax returns and the scrutiny that comes with it.
President Donald Trump recently asked Congress to investigate the IRS’s handling of returns and questioned whether the IRS is under political influence.
The U.S. Senate Judiciary Committee has also opened a probe into the IRS.
The House Ways and Means Committee is also investigating the IRS over the way the agency handles tax returns.