CCA 200946047: Charitable-contribution deductions and documentation

Plain-English summary

This Chief Counsel advice summarizes two cases relevant to charitable-contribution deductions. It states that one court disallowed a deduction because the taxpayers did not obtain a qualified appraisal or a contemporaneous written acknowledgment, and that the court described the missing acknowledgment as independently fatal. It also states that the Tax Court denied another deduction because the charity's receipts incorrectly said the taxpayers received no consideration. The attached case files are not included in the release.

Ruling snapshot

• Question: What documentation and consideration issues can defeat a charitable-contribution deduction?
• Outcome: Advice given
• Key authorities: IRC § 170

Full text (IRS public release)

ID: CCA-511438-09 Number: 200946047
Release Date: 11/13/2009
Office: ----------------
UILC: 170.00-00

From: ------------------
Sent: Friday, May 1, 2009 2:38 PM
To: --------------------
Cc: --------------
Subject: Charitable Contribution – -------- field office question

I am attaching two cases that will be relevant to our phone call: Bruzewicz and Addis.

In Bruzewicz, on a motion for summary judgment, the court disallowed a deduction for a charitable

Bruzwisc.pdf (106 Addis.doc (247 KB)
KB)
contribution because
taxpayers failed to obtain a CWA and also failed to
meet the regulatory requirements for a qualified appraisal. In fact, the court stated that failure to obtain the CWA "is alone fatal to their claimed deduction". There are also a number of Tax Court cases denying a deduction for lack of a CWA.

In Addis, the Tax Court denied a deduction for an alleged charitable contribution because the charity provided receipts to the taxpayers that incorrectly stated that the taxpayers received no consideration for their payments to the charity. The court found that, in fact, the taxpayers did receive consideration.