Non Cash Donations

[Jesse]

Curious as to how everyone is handling the client that submits large amounts for non cash charitable donations?

Client will provide the receipts, records, etc, but income of $88,000 and charitable donation of $3,500 or greater for donated items, seems a target area.

Sandy

Anything over $500 I've been asking to see documentation and then make a copy for my records. Sure have a lot of them, even the lower income that clean out the closet and go by some of - at least I think - inflated value guides. I explain the rules and I think that's the best I can do.

[Zee]

Curious as to how everyone is handling the client that submits large amounts for non cash charitable donations?

Client will provide the receipts, records, etc, but income of $88,000 and charitable donation of $3,500 or greater for donated items, seems a target area.

Sandy

If the client provides receipts, records, etc., it isn't the responsibility of the preparer to audit the records for authenticity. The IRS doesn't pay us to do that, or assume that role. Some ancillary programs provide averages, or averages are part of the software. Doesn't TurboTax have an audit meter? That's one benefit of such information. However, I wouldn't want to have to wait until the return is done and the audit meter or other information shows a high risk, and then have the client change their mind on the amounts. Some people might be scared even though it's legitimate.

[fliszt]

I've only

had one client that did that. Her income though was close to $100. But every year she would bring in donation names, donated address. I just questioned her with very serious questions and looked her straight in the eye. She never flenched and said everything was correct. I warned her of consequences and then went ahead and filed her return. My disclaimer cover letter also covers whos responsibility it is for the accuracy of the return.
Eventually, I caught her in a non-truth and dropped her as a client.
Larry

[S T]

Curious as to how everyone is handling the client that submits large amounts for non cash charitable donations?

Client will provide the receipts, records, etc, but income of $88,000 and charitable donation of $3,500 or greater for donated items, seems a target area.

Sandy