For crypto donations valued over $500, your organization may need to file a 8282 form with the IRS within 125 days of receiving the gift.
If this is surprising news, you're not alone! 8282 forms are often associated with gifts of real estate or in-kind donations. But it may apply to donations of cryptocurrency as well because crypto is considered an asset by the United States government, not a currency.
LET'S TALK TAX FILINGS (yay!)
Here's the IRS's explanation of who should file an 8282 form: "...organizations must file Form 8282 if they sell, exchange, consume, or otherwise dispose of...charitable deduction property within 3 years after the date the original donee received the property." Because gifts of crypto are automatically liquidated when given through Overflow, this means that upon receiving crypto donations, the property has been sold.
You may not have to file a form 8282 if the asset is stock, if the gift was valued at $500 or less, or if the items donations were "consumed or distributed for charitable purposes".
If you and your tax professionals determine that you need to file a form 8282, you need to do so within 125 days of receiving the gift. Luckily, we've made this easy to do in your Overflow Dashboard!
Form 8282 Automation within Overflow
We know you're busy and it's hard to keep track of all the donations flowing in to your organization, let alone what tax filings you may need to make! For every crypto donation made through Overflow, we will automatically generate a form 8282 to download from your Dashboard. Let's see how it works:
STEP-BY-STEP:
1. Log in to your Overflow Dashboard and navigate to the Forms tab.
2. Find the donation for which you've determined you need to file a Form 8282. Gifts that you have never reviewed will have the 8282 Status "Awaiting Review". Open the transaction by clicking anywhere within the row.
3. Click "Review Form" and read the disclaimer that appears. You can acknowledge receipt by selecting the checkmark next to "I have read and understood the statement above". Then click "Review". You can also select "Cancel" if you did not read or understand the statement or if you do not wish to continue.
4. The pre-populated Form 8282 will appear in a separate browser window in PDF format. From here, you can review the form and download it to complete the filing process outside of the Overflow Dashboard. You also can download the form from the contribution details window. The Document Lifecycle stages will update with the status "Reviewed" on the date you reviewed the form.
NOTE: Overflow automates the generation of the letter with the donation details. It is your responsibility to carefully review the form for any errors, sign and submit it with the IRS, and send a copy to your donor.
5. Return to the forms section of your Dashboard. The transaction will now have the 8282 Status "Filing Required" because you have already reviewed the contribution. Open the donation and click "Confirm Filing" to mark the filing as complete in your Dashboard. This feature is purely for your record keeping and needs to be updated manually.
Our Support Team is here to help if you have any questions. You can reach our team via email at support@overflow.co