Contemporaneous Receipt for Charitable;e Contributions

[Kram BergGold]

It appears a letter (gift under $250) or an acknowledgement letter (gift $250 or more) no longer has to be contemporaneous. I have searched and searched to confirm this but have been unsuccessful. Can anyone confirm this?

[Burke]

Haven't seen anything on any change from this requirement which was current as of May 2018. Prior court cases have invalidated deductions if contemporaneous receipts not present for over $250 amounts. Bank or payroll records are sufficient for under $250.

[New York Enrolled Agent]

It doesn't appear §170(f)(8) has changed - Kram what suggests there's been a change?

(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).

[Jiggers]

Is this saying that sending a check for $250 or more to an organization and then receive a thank you letter with the required verbage sometime after that, that the deduction isn't allowed?

What about a donation monthly, $250 or more in one check, to a church and receives a year end letter with the total contributions for the year, but not in detail.

[Rapid Robert]

From memory, I thought the rule was, you had to have the written acknowledgment before the earlier of the date the return is filed or the original due date. IOW you can't file with the deduction and then think, I'll get the acknowledgment later if I need it.

[Maude Lebowski]

Your memory is correct, Rapid Robert. Contemporaneous is the earlier of the due date or when the return is filed. I've seen several court cases where the court disallowed the deduction because the taxpayer didn't get the acknowledgement until he "needed" it. If the TP waits until then, it's not contemporaneous and it's too late.

[Kram BergGold]

Recently the IRS, I believe, put out a page that shows how each type of charitable contribution is handled. The only place it mentions contemporaneous is for gifts of stock. NCPE included this page in their book. I also saw it somewhere else. I agree contemporaneous means before you file. Since contemporaneous does not show up in the verbiage about cash gifts, in this chart, I just wonder if it no longer applies.

[New York Enrolled Agent]

Kram - I don't believe there is any change with regard to the taxpayer's requirement. See above §170(f)(8)(A)

There was a change in that subsection. Subparagraph (D) was repealed - that might be the issue????

(D) Substantiation not required for contributions reported by the donee organization. Subparagraph (A) shall not apply to a contribution if the donee organization files a return, on such form and in accordance with such regulations as the Secretary may prescribe, which includes the information described in subparagraph (B) with respect to the contribution.

[Burke]

Your memory is correct, Rapid Robert. Contemporaneous is the earlier of the due date or when the return is filed. I've seen several court cases where the court disallowed the deduction because the taxpayer didn't get the acknowledgement until he "needed" it. If the TP waits until then, it's not contemporaneous and it's too late.

Agree. Most of those cases where the CC's were disallowed were cases that were audited later, and the TP went to court. Then tried to get a retroactive receipt. Personally, I think that rule is a little arbitrary. If the TP can prove the deduction with a legitimate receipt, why does it matter when he gets it????

[Kram BergGold]

Got the Answer. The requirement for a contemporaneous record was repealed but then they reversed course and unrerpealed the change. So a contemporaneous record is required.