I gave Virginia my donation lists to back up my charitable deductions, but they were disallowed. Why?

Plain-English summary

This is a light-touch companion page. P.D. 25-99 is one of a series of materially identical June 30, 2025 Virginia determinations on the same fact pattern — see P.D. 25-95 for the full explanation and guidance.

The taxpayer claimed charitable-contribution itemized deductions for the 2020 tax year and, on audit, submitted donation lists as proof. The Department found that at least 8 of his donation lists were exact copies of lists submitted by multiple other taxpayers, and his application for correction was identical or nearly identical to those filed by those other taxpayers. That mass-produced paperwork is not credible evidence of his own gifts, and because a Department assessment is prima facie correct (§ 58.1-205) — leaving the burden on the taxpayer — the deductions were disallowed and the assessment upheld, with interest due within 30 days of the updated bill.

The governing rules are the same as in P.D. 25-95: Virginia itemized deductions follow the federal ones (§ 58.1-322.03, § 58.1-301), charitable gifts must be substantiated with genuine receipts, cancelled checks, and — for any gift of $250 or more — a contemporaneous written acknowledgment from the charity (Treas. Reg. § 1.170A-13), and taxpayers must keep adequate records (Treas. Reg. § 1.6001-1(a); § 58.1-310).

What this means for you

Substantiate charitable deductions with your own genuine records, not shared or templated donation lists. The Department compares documentation across filers and rejects duplicated lists and boilerplate appeals; when it does, the assessment stands and the burden is on you to prove it wrong. See P.D. 25-95 for the fuller discussion.

Common questions

Q: I submitted donation lists for 2020. Why were my charitable deductions denied?
A: The lists were found to be exact copies shared among many taxpayers, so they weren't credible proof of your own gifts. You need genuine receipts, bank/cancelled-check records, and a written acknowledgment from the charity for any gift of $250 or more.

Q: Is this different from P.D. 25-95, 25-96, or 25-97?
A: It's a separate taxpayer's appeal decided on the same facts and reasoning — copied donation lists (this one covering the 2020 year). P.D. 25-95 is the full write-up; this is a short companion.

Citations and references

Statutes and regulations:

• Va. Code § 58.1-1821 — application to the Tax Commissioner to correct an assessment
• Va. Code § 58.1-301, § 58.1-322.03 — Virginia itemized deductions follow the federal ones
• Va. Code § 58.1-219, § 58.1-310 — the Department may adjust IRC-inconsistent deductions and require records
• Va. Code § 58.1-205 — a Department assessment is prima facie correct; burden on the taxpayer
• Treas. Reg. § 1.170A-13 — substantiation for charitable contributions ($250+ written acknowledgment; property-gift rules)
• Treas. Reg. § 1.6001-1(a) — adequate records required

Prior public documents (described here, not linked): P.D. 19-78 and P.D. 23-24 (charitable-contribution substantiation). Companion rulings in this series: P.D. 25-95 (full write-up), 25-96, and 25-97.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 25-99

Original ruling text

June 30, 2025

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessment issued to * (the “Taxpayer”) for the taxable year ended December 31, 2020.

FACTS

The Taxpayer filed a Virginia resident income tax return for the taxable year at issue, claiming charitable contributions as itemized deductions reportable on federal Schedule A. Under audit, the Department requested documentation to support the contributions. The Taxpayer submitted some documentation, but the auditor determined it was insufficient to support all of the claimed deductions and issued assessments accordingly. The Taxpayer submitted an application for correction, asserting that he provided sufficient documentation to support the deductions.

DETERMINATION

Conformity

Virginia Code § 58.1-301 provides, with certain exceptions, that terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia . For individual income tax purposes, Virginia conforms to federal law, in that it starts the computation of Virginia taxable income with federal adjusted gross income (FAGI). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia .

Generally, the Department relies on the accuracy of information and computations reflected on the federal income tax return when reviewing Virginia individual income tax returns. If the information provided on the federal return appears reasonable, then, typically, the Department does not look behind those computations. The Department, however, may examine and adjust the FAGI and itemized deductions where there is clear evidence that the amounts reported on the federal or Virginia income tax return are inconsistent with the IRC. See Virginia Code § 58.1-219 and § 58.1-310.

Itemized Deductions

Virginia Code § 58.1-322.03 1 allows an individual to deduct from their Virginia adjusted gross income certain amounts allowed for itemized deductions for federal income tax purposes. These deductions include those for real estate taxes, home mortgage interest, personal property taxes, medical expenses, and charitable contributions, provided they are claimed in accordance with the IRC and its related regulations.

The Department requested that the Taxpayer provide documentation supporting the charitable contribution deductions claimed on his Schedule A for the taxable year at issue. The request indicated the specific documentation required to substantiate the deductions. Deductions for charitable contributions are allowable only when they can be substantiated through items such as receipts or cancelled checks. See Public Document (P.D.) 19-78 (7/29/2019) and P.D. 23-24 (3/1/2023). Any contribution over $250 must have a contemporaneous written acknowledgment from the donee indicating whether any goods or services were provided by the donee in connection with the contribution, and if so, what the value of those goods or services were. See Treas. Reg. § 1.170A-13(f)(2). Additional substantiation is required for gifts of property other than money. See Treas. Reg. § 1.170A-13.

Taxpayers must maintain records sufficient to allow the IRS to determine their correct tax liability. See Treas. Reg. § 1.6001-1(a). Similarly, Virginia Code § 58.1-310 provides:

Whenever in the opinion of the Department it is necessary to examine the federal income returns or any copy thereof of any individual, estate, trust, partnership or corporation in order properly to audit such returns, the Department or the commissioner of the revenue shall have the right to require such taxpayer to provide such return or a copy thereof and all statements, inventories, and schedules in support thereof.

Under the provisions of Virginia Code § 58.1-205, in any proceeding relating to the interpretation of the tax laws of Virginia, an “assessment of a tax by the Department shall be deemed prima facie correct.” As such, the burden of proof is on the Taxpayer to show that the Department’s assessment was erroneous.

The Department reviewed the documents submitted by the Taxpayer to substantiate his deductions and discovered that at least 8 of the Taxpayer’s donation lists were exact copies of lists submitted by multiple other taxpayers during the taxable years at issue. In addition, the Taxpayer’s application for correction was identical, or nearly identical, to that submitted by such other taxpayers. In light of this finding, the Department cannot accept the documentation submitted by the Taxpayer as substantiation for his claimed deductions. Accordingly, the Department’s assessment is upheld.

The Taxpayer will receive an updated bill that will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collection actions.

The Code of Virginia sections cited are available online at law.lis.virginia.gov. The public documents cited are available at tax.virginia.gov in the Laws, Rules & Decisions section of the Department’s website. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy and Legal Affairs, Tax Adjudication and Resolution, at or **.

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

AR/4987.X

Related Documents

19-78

23-24