Kaplan Financial Education: Charitable Deduction Disallowed for Failure to Meet Contemporaneous Written Acknowledgment Rules (May 26, 2022)

Ed Zollars, of Kaplan Financial Education, has published an article “Charitable Deduction Disallowed for Failure to Meet Contemporaneous Written Acknowledgment Rules”. The article begins as follows:

A taxpayer found her deduction for a donation of property to a museum was denied entirely for failing to meet the substantiation requirements of IRC §170(f)(8)(B) in the case of Albrecht v. Commissioner, TC Memo 2022-53.[1]

Substantiation Requirements

In order to obtain a charitable contribution deduction, various substantiation requirements must be made that vary based on the type of gift (cash, noncash, autos, etc.) and the amount being claimed.  This case involves the substantiation provisions Congress placed in IRC §170(f)(8).  The provision reads:

(8) Substantiation requirement for certain contributions.

(A) General rule. No deduction shall be allowed under subsection (a) for any contribution of $250 or more unless the taxpayer substantiates the contribution by a contemporaneous written acknowledgment of the contribution by the donee organization that meets the requirements of subparagraph (B).

Click here to read the full article: “Charitable Deduction Disallowed for Failure to Meet Contemporaneous Written Acknowledgment Rules”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.

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