Final Substantiation Regulations Issued | Sharpe Group
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. ■

Print Friendly, PDF & Email

The publisher of Sharpe Insights 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 Sharpe Insights 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.

Sharpe Insights

Site Search

Sharpe Insights Archives

2024 Issues 2023 Issues 2022 Issues 2021 Issues 2020 Issues 2019 Issues 2018 Issues 2017 Issues 2016 Issues 2015 Issues 2014 Issues 2013 Issues 2012 Issues 2011 Issues 2010 Issues 2009 Issues 2008 Issues 2007 Issues 2006 Issues 2005 Issues 2004 Issues 2003 Issues 2002 Issues 2001 Issues 2000 Issues 1999 Issues 1998 Issues 1997 Issues