- 11 - Section 170(a)(1) allows a deduction for any charitable contribution payment made within the taxable year if the payment is verified under regulations prescribed by the Secretary. If the taxpayer makes a charitable contribution of money, the taxpayer must maintain for each contribution either a canceled check, a receipt or letter from the charitable organization, or other reliable written records showing the name of the organization, the date of the contribution, and the amount of the contribution. Sec. 1.170A-13(a)(1), Income Tax Regs. A taxpayer may not deduct any charitable contribution of $250 or more unless the taxpayer substantiates the contribution with a written acknowledgment from the charitable organization. Sec. 170(f)(8)(A). The written acknowledgment must state the amount of any cash paid, whether the organization provided any goods or services in consideration for the cash, and the estimated value of any goods or services provided by the organization. Sec. 170(f)(8)(B). At trial, Mr. Beery contended that petitioners donated most of the $420 each year to the United Way but admitted that petitioners were unable to locate canceled checks for these contributions. Petitioners submitted no other records to substantiate the charitable deductions for the years at issue and did not present any testimony from a representative of the United Way or from any other entity to document the disputedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011