- 21 -
In addition, the Secretary requires that the taxpayer attach
an appraisal summary to the tax return. See sec. 1.170A-
13(c)(2)(i)(B), Income Tax Regs. The Secretary has listed in
section 1.170A-13(c)(4)(i) and (ii), Income Tax Regs., the items
to be included by the taxpayer in the appraisal summary. The IRS
has prescribed Form 8283 to be used as the appraisal summary.
Although we have not demanded that the taxpayer strictly
comply with the reporting requirements of section 1.170A-13,
Income Tax Regs., we have required that the taxpayer
substantially comply with the Treasury regulations in order to
take the deduction for a charitable contribution. See Hewitt v.
Commissioner, 109 T.C. 258 (1997), affd. 166 F.3d 332 (4th Cir.
1998). Based on the record, we find that petitioners did not
timely obtain qualified appraisals and failed to include complete
appraisal summaries with their 1993 and 1994 tax returns.
Because petitioners failed to comply substantially with section
1.170A-13, Income Tax Regs., we hold that petitioners are not
entitled to deduct the noncash charitable contributions.
IV. Section 6662(a) Accuracy-Related Penalties
Pursuant to section 6662(a), for each of the years in issue,
respondent determined an accuracy-related penalty of 20 percent
on the amount of the underpayment attributable to a substantial
understatement of tax. In the alternative, respondent imposed
the accuracy-related penalties on the amount of the underpayment
due to negligence or disregard of rules or regulations.
Respondent's determinations are presumed to be correct, and
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