CCA 200944046: Tax Court cases on substantial compliance for charitable contributions

Plain-English summary

This Chief Counsel Advice provides a list of Tax Court cases involving IRC § 170 charitable-contribution substantiation and the substantial-compliance doctrine. The list identifies cases where the doctrine allowed a deduction despite a documentation defect, as well as cases where the deduction was disallowed for a failure to substantiate. It also includes cases discussing substantial compliance outside the § 170 context. The document is a research list rather than a ruling on a taxpayer's particular deduction.

Ruling snapshot

• Question: What Tax Court cases address substantial compliance and substantiation of charitable contributions under IRC § 170?
• Outcome: Advice given
• Key authorities: IRC § 170; Bond v. Commissioner, 100 T.C. 32 (1993); Hewitt v. Commissioner, 109 T.C. 258 (1997)

Full text (IRS public release)

1

ID: CCA-227153-09 Number: 200944046
Release Date: 10/30/2009
Office: --------------
UILC: 170.12-09

From: ------------------
Sent: Friday 2/27/09 3:38 PM
To: ------------------------------------------------------ Cc: -------------- Subject: Cases involving substantial compliance

I put together a list of Tax Court cases that consider substantial compliance in relation to a section 170 contribution. I am sending you the list, just in case you would be interested.

TAX COURT CASES DISCUSSING § 170 AND SUBSTANTIAL COMPLIANCE

Bond v. Commissioner, 100 TC 32 (1993) T’s qualified appraiser had performed an appraisal and T attached Form 8283 to the return, containing all necessary information except the appraiser’s qualifications; T substantially complied

Fair v. Commissioner, TCM 1993-377 T did not maintain cost basis records for donation of boat; T substantially complied

D’Archangelo v. Commissioner, TCM 1994-572 No qualified appraisal; no substantial compliance

Daniel v. Commissioner, TCM 1997-328 No receipt for donated clothing; T substantially complied

Hewitt v. Commissioner, 109 TC 258 (1997) No qualified appraisal of non-publicly- traded stock and no Summary Appraisal attached to return; no substantial compliance

Jorgenson v. Commissioner, TCM 2000-38 No qualified appraisal and no Appraisal Summary for donation of auto and sliding wall partition; no substantial compliance

Kendrix v. Commissioner, TCM 2006-9 Failure to substantiate several donations; no substantial compliance.

Smith v. Commissioner, TCM 2007-368 No CWA or qualified appraisal; no substantial compliance 2

TAX COURT CASES DISALLOWING DEDUCTION UNDER § 170 FOR LACK OF SUBSTANTIATION; SUBSTANTIAL COMPLIANCE NOT DISCUSSED

Weyts v. Commissioner, TCM 2003-68 No CWA; no deduction

Stussy v. Commissioner, TCM 2003-232 No CWA; no deduction

Beery v. Commissioner, TCM 2003-331 No CWA; no deduction

Hill v. Commissioner, TCM 2004-156 No CWA; no deduction

Castleton v. Commissioner, TCM 2005-58 Complete failure to substantiate any contributions (virtually no written documentation of any kind): no deduction

Todd v. Commissioner, 118 TC 334 (2002) Only cost basis allowed for donated shares of stock because no substantiation

Addis v. Commissioner, 118 TC 528 (2002) No CWA; no deduction

TAX COURT CASES DISCUSSING SUBSTANTIAL COMPLIANCE BUT NOT IN CONTEXT OF § 170

Taylor v. Commissioner, 67 TC 1071 (1997) (Cited as precedent in Bond; issue was election in computing farm income)

Estate of Chamberlain v. Commissioner, TCM 1999-181 (qualified disclaimer issue)

Estate of Clause v. Commissioner, 122 TC 115 (2004) (election issue)