SAN FRANCISCO – You probably thought Dec. 31 was your last chance to boost your 2004 deduction for charitable contributions, but Congress is attempting to turn that rule on its head in an effort to pump up donations to tsunami relief efforts.

On Thursday, Congress passed legislation extending the deadline through Jan. 31 for claiming charitable contributions in 2004 – as long as taxpayers give cash and it goes to aid victims of the South Asia tsunamis.

Many expect President Bush will sign the bill, though the White House press office says no schedule has yet been set.

“The American people are some of the most generous in the world, and this proposal will give them an extra incentive to support this great cause,” said Sen. Max Baucus, D-Mont., ranking member of the Senate Finance Committee, in a press release.

Baucus proposed the legislation on Tuesday. “I commend my congressional colleagues for prompt and timely action on this bill,” he said.

Rep. Bill Thomas, R-Calif., chairman of the House Ways and Means committee, and Charles Rangel, D-N.Y., ranking member of the committee, were original co-sponsors in the House. The Senate and the House passed the bill by unanimous consent.

Taxpayers: Don’t think this gives you extra time to donate stock or that old car in your driveway: The law pertains to cash contributions alone.

Also, be wary when choosing an aid organization. Scammers are sending out e-mail solicitations claiming to be legitimate charities or even victims, and some fraudulent companies are selling products and promising a portion of the profits will go to relief efforts.

“You want to make sure you’re donating to a bona fide charity,” said Robert Johanson, a certified public accountant and adviser with NBS Financial Services, based in Westlake Village, Calif.

To sort the worthy aid efforts from the nefarious, go to Web sites such as the Better Business Bureau’s Wise Giving Alliance, GuideStar or Charity Navigator (see Web site links below).

Also, read IRS Publication 526 for details on which types of charities qualify for the charitable-contribution deduction. For instance, there are restrictions regarding donations to international organizations. Taxpayers may deduct donations to U.S.-based organizations that transfer funds to charitable foreign groups if the U.S. charity controls the use of the funds, or if the foreign organization is an administrative arm of the U.S. organization, among other exceptions. See IRS Publication 526: http://www.irs.gov/pub/irs-pdf/p526.pdf.

Taxpayers who claim the standard deduction will need to give without receiving a tax benefit. “When people don’t itemize, I suppose it’s not a tax benefit. They’re already taking benefit of the standard deduction,” Johanson said.

For more information on legitimate charities, try these sites:

BBB’s Wise Giving Alliance: http://www.give.org/

GuideStar: http://www.guidestar.org/

Charity Navigator: http://www.charitynavigator.org/

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AP-NY-01-07-05 1822EST

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