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services in consideration, in whole or in part, for all but one
of her cash and noncash contributions in excess of $250
constituted a failure to comply with what is specifically
described by the Internal Revenue Code as a “[s]ubstantiation
requirement”. See sec. 170(f)(8). Petitioner, a long-time IRS
employee and self-professed frequent contributor to charitable
organizations, should have been aware that all but one of the
donee acknowledgments failed to satisfy the special
substantiation requirement of section 170(f)(8)(B)(ii), and she
should have asked the issuing donee organizations to satisfy that
requirement before deducting her contribution to those
organizations in excess of $250. Not only is the requirement to
obtain a proper acknowledgment set forth in the Code and in the
regulations (see sec. 1.170A-13(f)(2)(i)), it is also contained
in both the instructions for preparing Schedule A (see, e.g.,
2000 Instructions for Schedule A, Itemized Deductions, p. A-4)
and IRS Publication 526, Charitable Contributions, 13 (Rev.
December 2000).
By demonstrating petitioner’s failure to substantiate the
charitable contributions disallowed herein, respondent has met
his burden of production, under section 7491(c), with respect to
his determination of penalties under section 6662(a). Because
petitioner has failed to meet her burden of proving that she
acted with reasonable cause and good faith, we sustain
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