In Tax Court Memo 2015-71 , A taxpayer claimed a charitable contribution deduction of $37,315 for donations of household goods to four charities. Items given to Goodwill were taken in batches at various times and placed in large bins for after-hours drop-offs or outside the warehouse door. Other items were scheduled for pickup and left outside his house, with a receipt from the charities thanking him for his contribution. However, he did not provide evidence to show the condition of the donated items or obtain an appraisal (for property contributions valued at more than $5,000) to support their value.
Although the Tax Court believed the taxpayer donated property to the charities, it disallowed the deduction because the substantiation requirements of IRC Sec. 170(f)(8) and (11) were not satisfied. In addition, the taxpayer was subject to a Section 6662 accuracy-related penalty of $2,468.
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