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Do Refunds Require a Form 1099?

(California)

A parish has a restricted building fund and the parish has now decided not to move forward with the construction. They are going to ask the donors if they will agree to redirect the funds. But, if they ask for a refund, and the original donation was over $600, do we need to issue a 1099?

[Vickey's Reply}

No, but there could be tax consequences that your donors should know about. See this article regarding Refunds of Charitable Contributions