Q. Is the recipient of zakat from a 501(c)3 organization required to report the amount to the IRS?
Q. Is a 501(c)3 required to report the amount of distribution of zakat to individuals?
A. After consulting with a CPA, who verified with IRS senior agent Ms. Daniels, ID Number 1306043, as of 2013, zakat is considered a gift [by IRS terminology] because the individual is not providing a service. The gift would not be considered income. Therefore an individual does not have a reporting requirement in terms of income - and the 501(c)3 similarly would not have a reporting requirement.
Refer to page 96 of the 2013 IRS Publication 17.
Q. Could a trust account be used to handle zakat funds?
A. Coming soon
Q. Is it permissible to distribute zakat in form of a check payable to a creditor?
A. Coming a bit later
Q. Can zakat funds be commingled with operating funds?
A. Soon
Q. Can administrate costs be paid with zakat funds?
A. Soon
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