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1.170A-13(c)(7)(xi)(A), Income Tax Regs. Petitioners rely on
their plain language reading of the market quotations requirement
and argue that the regulation is invalid because inconsistent
with that reading. Since we reject petitioners’ plain language
reading, we reject petitioners’ argument based on that reading,
that the regulation is invalid.
Petitioners have failed to satisfy the market quotations
requirement for purposes of determining whether the shares were
(1) publicly traded so as to be exempt from the substantiation
requirements and (2) qualified appreciated stock.
4. Substantiation Requirements
Petitioners have failed to show that they complied with the
three substantiation requirements specified in section 1.170A-
13(c)(1), Income Tax Regs. First, there is no evidence that they
met the requirements specified in section 1.170A-13(c)(3), Income
Tax Regs., for a qualified appraisal. Second, no appraisal
summary is attached to the Form 8283 submitted with the Form
1040, as required by section 1.170A-13(c)(2)(B), Income Tax Regs.
Third, there is no evidence that they maintained records
containing the information required by section 1.170A-
13(b)(2)(ii), Income Tax Regs.
We find that petitioners failed to meet the substantiation
requirements. Accordingly, except with respect to the $33,338
respondent allowed for 1994, no charitable deductions are allowed
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