Ask The California Employment Tax And Payroll Tax Attorney – At This Time Of Year Beware Of Charity Fraud

By Robert S. Schriebman

2022

Introduction

The year of 2022 has seen unprecedented disasters. Hurricane Ian, the massive forest fires in California and surrounding sister states have given opportunities to crooks who have set up phony charities that prey on innocent victims, pocket your hard-earned money, and laugh all the way to the bank. On October 17, 2022, the IRS announced Charity Fraud Awareness Week. There are massive frauds against legitimate charities, businesses and individuals. Conservatively, the IRS estimates that legal charitable organizations will lose 5% of their revenue this year. The IRS is urging you to check out charities before you write your check or go online to make a payment

You should also be suspicious of where your hard-earned money is going when you donate to a long-recognized charity. As an example, the last time I was in the grocery store, I was asked if I wanted to give my change to “x charity.” I politely refused. One of the reasons I was reluctant was my concern with what percentage of my pocket change would actually go for the charity’s announced purpose. By the time the market gets its cut, and the promoters get their cut, perhaps 5% or less of my contribution will actually go to cure a disease or feed the hungry. It’s the same with the ads on TV that we will be bombarded with between now and the end of the year. Ask yourself, “What do these commercials cost to produce and also cost to air?” If I give to the advertised charity $100, how much will the charity put to use? I guarantee you it will be a very small and disappointing percentage. It costs big bucks to run an ad on TV.

Do Your Homework

The IRS recommends that you should verify legitimate and qualified charities using the IRS’ “Tax Exempt Organization Search Tool” at IRS.gov. Never feel pressured to give immediately. Do your homework and see what percentage of your hard-earned dollar will actually go to the purpose you intend to help.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

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