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In Addis, as here, the taxpayer negotiated a charitable
split-dollar life insurance contract. The insurance policy there
also was owned by a trust, whose beneficiaries were also the
taxpayer’s family. The taxpayer in Addis also set up a
foundation with a charity. She also donated money to the
charity, and the charity also issued an acknowledgment letter
with language designed to meet section 170(f)(8)'s substantiation
requirements; i.e., that the charity “did not provide any goods
or services to the donor in return for the contribution.” That
charity also used the donated funds to pay the premiums on a life
insurance contract, entitling it to a percentage of the proceeds
upon the taxpayer’s death.
Our analysis in Addis centered on the substantiation
requirement. Taxpayers may deduct cash contributions that are
made to a qualified donee organization. Sec. 170(a). If a
taxpayer contributes $250 or more at one time, the donee
organization must substantiate the donation in writing for the
deduction to be allowed. Sec. 170(f)(8).
This writing must specify whether the donor received or
expected to receive any goods or services from the charity in
7(...continued)
(7th Cir. 1985). There are exceptions, Golsen v. Commissioner,
54 T.C. 742, 757 (1970), affd. 445 F.2d 985 (10th Cir. 1971), but
they do not apply here. Now that our previous opinions in Addis
(and Weiner) have been affirmed, we of course have no reason not
to follow them.
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