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Tax Court Denies Charitable Contribution

Donor did not meet new substantiation requirements, court ruled.

Witherspoon v. Commissioner, T.C. Memo. 1994-593

Background. As readers of this newsletter are aware, new rules took effect in 1994 for the substantiation of individual charitable contributions of $250 or more. However, the rules for substantiating cash contributions of less than $250 remain the same. Donors making individual cash contributions of less than $250 must be able to substantiate such contributions with one of the following: (1) canceled checks, (2) a receipt or letter from the church showing the church's name and the amounts and dates of the contributions, or (3) any other reliable written record showing the name of the church and the amounts and dates of the contributions.

A taxpayer claimed cash contributions of $3,500 to her church. She was audited and the IRS denied any deduction for these contributions. The IRS claimed that the woman had insufficient evidence to substantiate ...

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Posted:
  • March 1, 1995

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