TaxNewsFlash-Exempt Organizations

August 6, 2008
No. 2008-69

PRINTABLE VERSION

Proposed Regulations on Substantiation and Reporting Requirements for Charitable Contributions

The Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-140029-07) that generally implement changes made by legislation enacted in 2004 and 2006 to the substantiation and reporting requirements for cash and non-cash charitable contributions.

For an electronic version of today’s proposed regulations (45 pages): REG-140029-07

Overview

According to the preamble, today’s proposed regulations:

Implement the recordkeeping requirements imposed by the Pension Protection Act of 2006 for all cash contributions and provide new definitions of a “qualified appraisal” and “qualified appraiser” for non-cash contributions

Incorporate the substantiation requirements for non-cash contributions imposed under the American Jobs Creation Act of 2004 on: (1) a C corporation (other than a closely held corporation or a personal service corporation) claiming a deduction of more than $5,000; and (2) any taxpayer claiming a deduction in excess of $500,000

The proposed regulations also generally incorporate requirements under existing regulations including the “appraisal summary” requirements for Form 8283, Noncash Charitable Contributions.

Comments

The IRS and Treasury stated that additional changes to the substantiation regulations may be proposed in the future and therefore are requesting comments concerning additional issues that ought to be addressed.

Comments and requests for a public hearing concerning today’s proposed regulations must be received by a date that is 90 days after the proposed regulations are published in the Federal Register (which is scheduled for Thursday, August 7, 2008).

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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