Posted October 15th, 2018

Final Substantiation Regulations Issued

The IRS has released final regulations on substantiation of charitable gifts that closely track proposed regulations issued in 2008. Among the final rules contained in T.D. 9836:

Pledge cards – A blank pledge card provided as part of a workplace giving campaign does not constitute adequate substantiation because it does not show the information required under Code §170(f)(17).

Appraiser privacy – Qualified appraisers may use a taxpayer identification number, rather than a Social Security number, when signing appraisals.

Form 8283 – Although there is no specified form for contemporaneous written acknowledgments, Form 8283 does not qualify under Code §170(f)(8) since it lacks some of the information required under Code §170(f)(8)(B).

Carryover deductions – A qualified appraisal must be attached to the income tax return on which a deduction is taken for a noncash gift in excess of $500,000. If any portion of the deduction is carried over to later years, the appraisal must also be attached to those returns. The IRS said its need for the information outweighs any burden on the taxpayer.

Qualified appraisers – A qualified appraiser is an individual with “verifiable education and experience” valuing the type of property for which the appraisal is performed. The IRS declined to change the standard to “education or experience,” saying it would be contrary to language in Code §170(f)(11)(E)(ii)(l).

IRS actuarial tables – The tables used to value charitable remainder trusts cannot be used as a substitute for qualified appraisals to value property in other contexts. The tables don’t provide a fair market value, the IRS said. ■

The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details.

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