The United States Tax Court has again sided with the Internal Revenue Service in disallowing a charitable contribution because there was no contemporaneous written acknowledgement from the recipient at the time of the contribution.
The $64 million donation was a façade easement to a historic trust. There was no contemporaneous written acknowledgement from the donee organization, as required by Code Section 170(f)(8)(A). These requirements must be met in order to substantiate any contribution of $250 or more. (15th West 17th Street LLC v. Commissioner, 147 T.C. No. 19.)
A critical element is the requirement that the contemporaneous written acknowledgement must state whether the donee provided the donor with any goods or services in exchange for the gift.
This post was written by Larry Blair.