IRS Takes Aim at Cuomo Plan to Ease Burden of New Federal Tax Law on New York

By Mark Weiner

WASHINGTON - The Internal Revenue Service issued a warning Wednesday to taxpayers in New York and other high-tax states whose governors have come up with plans to help taxpayers avoid new limits on federal deductions for state and local taxes.

Gov. Andrew Cuomo signed a bill in April that allows New Yorkers to avoid the new $10,000 limit on deductions by turning their state and local tax payments into fully-deductible contributions to charitable trusts. Those trusts would forward the payments to government entities.

But IRS and Treasury Department officials urged caution on Wednesday, issuing a public notice that the departments plan to issue new guidance on the use of charitable contributions as a tax workaround.

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Source: syracuse.com (via Empire Report New York)