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for the noncash charitable contributions because they
substantially complied (that the information provided is
sufficient to meet the requirements) and because they had
“reasonable cause * * * for [any] failure to fully comply.”
A charitable contribution is allowable as a deduction only
if verified under regulations prescribed by the Secretary. Sec.
170(a)(1); Hewitt v. Commissioner, 109 T.C. 258, 261 (1997),
affd. without published opinion 166 F.3d 332 (4th Cir. 1998).
The obligation to substantiate charitable contribution deductions
is clear and unambiguous. Blair v. Commissioner, T.C. Memo.
1988-581. No deduction is allowed for a contribution in excess
of $5,000 unless the taxpayer meets the substantiation
requirements of section 1.170A-13(c)(2), Income Tax Regs. Todd
v. Commissioner, 118 T.C. 334, 340 (2002); sec. 1.170A-
13(c)(1)(i) Income Tax Regs. Section 1.170A-13(c)(2)(i), Income
Tax Regs., generally provides that a taxpayer must comply with
the following three requirements:
(A) Obtain a qualified appraisal (as defined in
paragraph (c)(3) of this section) for such property
contributed. If the contributed property is a partial
interest, the appraisal shall be of the partial interest.
(B) Attach a fully completed appraisal summary (as
defined in paragraph (c)(4) of this section) to the tax
return (or, in the case of a donor that is a partnership or
S corporation, the information return) on which the
deduction for the contribution is first claimed (or
reported) by the donor.
(C) Maintain records containing the information
required by paragraph (b)(2)(ii) of this section.
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Last modified: March 27, 2008