Tax Insights

Your Guide to State, Local, Federal, Estate + International Taxation

Frustrated with the federal debt? Make a gift to reduce it

The Bureau of Fiscal Service accepts gifts donated to the United States Government to reduce the debt held by the public. Acting for the Secretary of the Treasury, the Fiscal Service may accept a gift of:

  • Money – made only on the condition that it be used to reduce debt held by the public.
  • An outstanding government obligation – made only on the condition that the obligation be retired, and the redemption proceeds used to reduce debt held by the public.
  • Other intangible personal property – made only on the condition that the property is sold and the proceeds from the sale used to reduce the public debt.

Gifts to reduce the debt held by the U.S. public may be inter vivos gifts or testamentary bequests. The Treasury Department is required to place the funds in a special account to be dispensed only for the purpose of the public debt reduction.

Your gifts are tax deductible, so be sure to substantiate contributions of $250 or more by contemporaneous written acknowledgement (normally provided by the Bureau of Public Debt within two weeks after receipt).

To make a contribution of money:

  • You can make a contribution online by credit card, debit card, PayPal, checking account or savings account at Pay.gov
  • Or write a check payable to the Bureau of the Fiscal Service and, in the memo section, notate that it’s a gift to reduce the debt held by the public. Mail your check to:

Attn: Dept G

Bureau of the Fiscal Service

O. Box 2188

Parkersburg, WV 26106-2188

For the 2018 fiscal year, over $700,000 has been gifted to date. With billions owed, we still have a long way to go!

 

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