Timothy E. Butler - Page 12

                                       - 12 -                                         
          from the donee charitable organization showing the name and                 
          address of the donee, the date and location of the contribution,            
          and a description of the property in detail reasonably sufficient           
          under the circumstances.  Sec. 1.170A-13(b)(1), Income Tax Regs.;           
          see Thorpe v. Commissioner, supra.  Where it is impractical to              
          obtain a receipt, taxpayers must maintain reliable written                  
          records of their donations.  Sec. 1.170A-13(b)(1); see Daniel v.            
          Commissioner, T.C. Memo. 1997-328.                                          
               At trial, petitioner alleged that he made donations to the             
          Unification Church in Mequon, Wisconsin.  According to                      
          petitioner, he would deliver a check to the church to be held "as           
          collateral" for a few days until he came back with cash, at which           
          time the church would return his check uncashed as a receipt.               
          The following testimony by petitioner portrays the alleged                  
          arrangement:                                                                
               I gave it [my check] to the individuals [the clergy] to                
               hold for me, because they didn't have a check -- a                     
               receipt program of their own.  So with my good faith, I                
               said, Hold the check.  I'm going to bring you the money                
               in just a couple days to help you.  Then you can stamp                 
               the check paid that I gave you the money, and I'll take                
               my check.  It will act as our receipt.  And that's the                 
               way we did our business like that.                                     

          In response to the question why the church did not cash the check           
          and thereby let the canceled check serve as a receipt, petitioner           
          testified:  "Because I had other plans for my funds in the bank             
          and I wanted to bring them the cash."  Petitioner testified                 






Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011