Be wary of making anonymous political contributions in excess of $13,000

May 11, 2011

This is a letter from the IRS to a taxpayer (name redacted), indicating that ananymous gifts (or any gifts) in excess of $13,000 to a 501(c)(4) organization may be subject to US gift tax.

“The Internal Revenue Service has received information that you donated cash to [REDACTED], an IRC Section 501(c)(4) organization,” the agent wrote to a donor. “Donations to 501(c)(4) organizations are taxable gifts and your contribution in 2008 should have been reported on your 2008 Federal Gift Tax Return (Form 709).”