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the $557,000 death benefit only if it paid the premiums for the
life insurance policy. We conclude that the NHF receipts do not
comply with the substantiation requirement of section 170(f)(8)
and section 1.170A-13(f)(6), Income Tax Regs., because NHF
incorrectly stated in the receipts that petitioners received no
consideration for their payments.
D. Consequence of Failure To Comply With Section 170(f)(8)
Section 170(f)(8) disallows a charitable contribution
deduction in circumstances such as these, where the donee
organization’s contemporaneous written acknowledgment is
erroneous and is not a good faith estimate of the value of goods
or services it provided, and where the taxpayer unquestioningly
and self-servingly uses that erroneous statement to claim a
charitable contribution larger than the one to which he or she
would be entitled under section 170. Secs. 1.170A-13(f)(7),
1.170A-1(h)(4)(ii), Income Tax Regs. The written acknowledgments
by NHF did not meet the requirements of section 170(f)(8) and
section 1.170A-13(f)(6), Income Tax Regs. Thus, petitioners may
not deduct their contributions to NHF of $36,285 in 1997 and
$36,000 in 1998.
To reflect the foregoing,
Decision will be entered
for respondent.
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