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Housing Works provides the donors with a “Donation Inventory
List” form that is completed by the donor (the inventory list).
The inventory list invites the donor to make entries showing:
(1) The item(s) donated, whether specifically or by generic
category (e.g., clothing, furniture, housewares, etc.); (2) the
number of items donated; and (3) the value(s) of the donated
item(s). Property descriptions and values are provided by the
donor, and Housing Works does not verify the accuracy of the
information reported on the inventory list.
In the notice of deficiency, respondent disallowed, for lack
of substantiation and other reasons, the entire charitable
contribution deduction (i.e., $55,764) claimed on petitioner’s
2002 return and imposed a $2,930 accuracy-related penalty.
According to respondent, the underpayment of tax required to be
shown on petitioner’s 2002 return is due to negligence or
intentional disregard of rules or regulations.
Discussion
Respondent now agrees that petitioner in entitled to a
charitable contribution deduction totaling $4,652.8 Petitioner
now concedes that the charitable contribution deduction claimed
8 This amount consists of $1,053 in cash contributions and
$3,599 in property contributions.
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Last modified: May 25, 2011