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Respondent contends that petitioners have not proved that
they made the charitable contributions in issue, and as discussed
infra, they acted fraudulently in claiming a portion of such
amounts.
Section 170 allows as a deduction any charitable
contribution actually paid during the taxable year. Sec.
170(a)(1); sec. 1.170A-1(a), Income Tax Regs. The term
"charitable contribution" is defined under section 170(c) as:
a contribution or gift to or for the use of --
(1) A State, a possession of the United
States, or any political subdivision of any of the
foregoing, or the United States or the District of
Columbia, but only if the contribution or gift is
made for exclusively public purposes.
(2) A corporation, trust, or community chest,
fund, or foundation --
(A) created or organized in the United
States or in any possession thereof, or under
the law of the United States, any State, the
District of Columbia, or any possession of
the United States;
(B) organized and operated exclusively for
religious, charitable, scientific, literary, or
educational purposes, * * *
(C) no part of the net earnings of which
inures to the benefit of any private shareholder
or individual; and
(D) which is not disqualified for tax
exemption under section 501(c)(3) by reason of
attempting to influence legislation, and which
does not participate in, or intervene in * * *,
any political campaign on behalf of * * * any
candidate for public office.
* * * * * * *
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