Bruce K. and Marina V. Ney - Page 18

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          mandatory,” but “nothing in Bond * * * relieves * * * [the                  
          taxpayers] of the requirement of obtaining a qualified                      
          appraisal.”  Hewitt v. Commissioner, supra at 263-264.  Although            
          the value of the stock was not in dispute, the qualified                    
          appraisal requirement is imposed by DEFRA section 155.  Id. at              
          264.  The doctrine of substantial compliance could not excuse the           
          taxpayers’ failure to comply with that requirement.  Id. at 265-            
          266.                                                                        
               In D’Arcangelo v. Commissioner, supra, the taxpayers donated           
          art supplies to a high school and claimed a charitable                      
          contribution deduction.  The taxpayers attached a Form 8283 to              
          their tax return along with a “letter of appraisal” from the high           
          school principal.  At trial, the taxpayers also introduced expert           
          testimony concerning the value of the donated property.                     
               The Court held that the taxpayers had failed to obtain a               
          qualified appraisal and, therefore, had not substantially                   
          complied with the regulations.  The principal was not a qualified           
          appraiser because he was employed by the donee and did not                  
          regularly perform appraisals.  The taxpayers’ expert witness                
          performed only a cursory inspection of the donated items several            
          years before the date of contribution, and he was generally                 
          unfamiliar with the condition of the items as of that date.  We             
          stated that, unlike the taxpayers in Bond, the taxpayers “did not           
          merely fail to attach evidence of a qualified appraisal, they               






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