Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

The bank where I have my personal checking account and the
different bank where I have my business checking account
both allow me to view both sides of the cancelled check
on-line and download both images as a PDF file. (The front
and back are both on a single page, which ties them
together.) Since my business checking account bank sends
only the image of the front of the check with my statements,
I download and save the image of both sides from their web
site for any important checks, such as tax payments that are
not made through EFTPS.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

That's the way it used to be, when the check traveled from
bank to clearing house to other clearing houses, and to your
bank. The back was stamped along the way.

Now days, with "Check 21", the check never leaves the
_first_ bank, where it is scanned. Only the electronic
scanned image goes through the system. Any tracking records
are now only data records and are not stamped on the back of
the check that is held at the first bank for a time and then
destroyed.

So at the most, seeing the back of the check would only show
the original endorsement (which itself might be useful and
necessary to see in some cases).

--
-Ernie-

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:

- quote -

Many banks now have on-line banking. As a part of that
service my bank (Wells Fargo) gives access to images of both
the front and back of every check.

Unfortunately images are not always as legible as the
original. And when forgery is claimed they cannot be used
to determine the facts as well. But it's better than
nothing!

Stu

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Victor Roberts wrote:
- quote -

Indeed that is the law. However the real sticking point is
how easy it is for a bank's customer to have access to the
back of the check. That is what we need to be able to read
in order to furnish information to IRS and state authorities
so they can then trace the payment with certain tracking
numbers.

Memo to myself: call my bank and check this out.

ChEAr$,
Harlan Lunsford, EA n LA

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:

- quote -

Doesn't the law that allows banks to transfer only check
images between themselves also state that this image has the
same legal standing as the check itself?

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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hnslunsford[at]bellsouth.net (Harlan=A0Lunsford)
Bill wrote:

- quote -

Thanks, Harlan, for your advisory on this. The old order
changeth, and we must adjust.

Bill

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A.G. Kalman wrote:
- quote -

Further to clarify, since a "bank record" may suffice,
remember that many banks do not return cancelled checks any
longer, but provide a facsimilie of the front of the check
on the statement. So I'm hoping IRS will buy this if need
be.

ChEAr$,
Harlan

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Bill wrote:
- quote -

Aye, but they will in the future, the future being year 2007
an onwards.

Another point. There are churches who every January ask
the member how much they gave during the year and cheerfully
make out his receipt for that amount, whether paid via
check, cash in numbered envelopes, or put in collection
plate.

ChEAr$,
Harlan Lunsford, EA n LA

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Harlan Lunsford wrote:
- quote -

Just to clarify, the new law requires either a receipt from
the charity or a bank record. The document must reflect the
date, the amount and the name of the charity. A canceled
check meets this requirement.

Basically, the new law has eliminated the ability to take a
deduction for cash gifts without a receipt.

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prm20871[at]verizon.net (Phil=A0Marti) posted:

- quote -

Thank you for that info. I had not been aware of that, and
I am happy to add that to my knowledge base.

Bill

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"Shhhh" <123[at]456.com> wrote:

- quote -

I imagine that if you put the cash in a donation envelope
with your name on it, the church would add it to their
ledger and include it in your "statement" at the end of the
year.

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Shhhh wrote:

- quote -

Thanks to the changes Congress just made in the Pension
Protection Act of 2006, beginning in 2007 you will not be
able to take a charitable deduction on any cash gifts unless
you have a written communication from the recipient showing
the name of the recipient, the date of the contribution, and
the amount of the contribution.

For 2006 and earlier years, you don't need a receipt for
cash gifts of less than $250 as long as you keep adequate
personal records evidencing the donations. Each separate
weekly contribution is treated as a separate gift.

--Chris

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- quote -

Sounds like someone has been reading about the new
limitations on charitable deductions in the recently signed
Pension Reform Act. My initial take is that unreceipted cash
contributions will not be deductible starting in tax year
2007. (Actually in tax years starting after August xx,
2006). Anyone have better info?

--
Don EA in Upstate NY

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123[at]456.com (Shhhh) posted:

- quote -

You are certainly entitled to claim _all_ of the donations
you made to your church -- or any charity, for that matter.
If you have regularly made such contributions over the
years, the IRS will most likely not question a "reasonable"
sum added to the total shown on the "statement." [Remember:
"reasonable" is a subjective term; opinions may differ.]

You should always make a contemporaneous notation (maybe on
a calendar) of cash contributions, and save that with your
tax records for the required period -- generally 3 years
from the date of filing.

Seems to me the easiest solution would be to change your
practice, and make the additional weekly contribution also
by check, thereby having a paper trail for all contributions
to the church. Btw, the IRS almost never questions small
cash sums (e.g., $20 to Salvation Army, $10 to Red Cross,
etc.) -- especially if they fit a pattern of regular giving
over the years.

Bill

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"Shhhh" <123[at]456.com> wrote

- quote -

You can always claim any number you want to on your tax
return. It's when (or if) you get audited that you will be
called upon to prove that you actually made those
contributions. If your records are credible, and in that I
mean there wouldn't be, or shouldn't be, any reason to doubt
your claim that the ATM withdrawals went to a church, then
your claimed deduction stands.

Now, one thing they look for would be some substantiation
that the ATM cash withdrawals mesh up with reality. If you
were to claim that ~all~ of your ATM withdrawals went into
the "charity bag" - well, that just doesn't sound credible.
If the ATM withdrawals were on various days of the week,
well, that too, just doesn't sound credible. If the ATM
withdrawals were at locations not even close to where you
reside or go to church (like at the beach or mountains),
that also, doesn't sound credible.

As you should know, the paper trail created by a check, or
those pre-numbered envelopes used by many congregations,
becomes invaluable as credible proof of your contributions.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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Shhhh wrote:

- quote -

Formerly you could, but with the new law recently signed by
the President all donations must be evidenced by some kind of
substantiation, namely a receipt.

ChEAr$,
Harlan Lunsford, EA n LA

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"Shhhh" <123[at]456.com> wrote:

- quote -

Section 1217 of the recently enacted pension bill has a
provision that ALL cash contributions must be acknowledged
to be deductible, effective 2007. I suggest you put a check
in the alms box if you want a deduction.

For 2006 I'd go ahead and claim the deduction, assuming
you've kept records.

Phil Marti
Clarksburg, MD

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"Shhhh" <123[at]456.com> writes:

- quote -

Under the new rules (which I believe don't take effect until
next year), you cannot deduct cash donations unless you get
a receipt for them.

So if you put cash in a pledge envelope and your church puts
that on your "statement", you can deduct it. If you just
anonymously put cash in the plate or in some collection and
don't get a receipt, you can't deduct it.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Every week when I go to church I make a cash withdrawal for
$XX and put it in the charity bag at chuch. I make a larger
monthly donation that I write a check for. At the end of the
year, our church sends everyone who gave by check a
"statement" that they can use for tax purposes... how is
cash handled? will I be allowed to claim the cash donation
on my taxes?

Thanks,
Shhhh

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