David C. Roark and Estate of Irene Roark, Deceased, David C. Roark, Executor - Page 13

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          consideration for the donation, as well as an estimate of their             
          fair market value.  Sec. 170(f)(8)(B); sec. 1.170A-13(f)(2), (6),           
          Income Tax Regs.  According to the Commissioner, the letters NCF            
          sent Roark fail to meet the terms of the statute and regulation             
          because Roark did expect that NCF would pay the premiums, and the           
          payment of those premiums was valuable to him--in other words, it           
          was not true, as NCF wrote in its letter, that “no goods or                 
          services have been provided in connection with this gift.”                  
               In countering the Commissioner, Roark first argues that NCF            
          was not legally obliged to pay the premiums.  Whether NCF was               
          under a legal obligation might be relevant here under the step-             
          transaction doctrine.  (Though perhaps not even then.  See Blake            
          v. Commissioner, 697 F.2d 473, 480 (2d Cir. 1982), affg. T.C.               
          Memo. 1981-579.)  The regulation that applies here, however,                
          makes clear that the key question is whether a donor expected to            
          receive consideration, not whether he was entitled to receive it:           
          “A donee organization provides goods or services in consideration           
          for a taxpayer’s payment if, at the time the taxpayer makes the             
          payment to the donee organization, the taxpayer receives or                 
          expects to receive goods or services in exchange for that                   
          payment.  Sec. 1.170A-13(f)(6), Income Tax Regs. (emphasis                  
          added).  We look for a quid pro quo, not a possible cause of                
          action.                                                                     








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