Wednesday, January 16, 2013
The Treasury Inspector General for Tax Administration yesterday released Many Taxpayers Are Still Not Complying With Noncash Charitable Contribution Reporting Requirement (2013-40-009):
TIGTA estimates more than 273,000 taxpayers claimed approximately $3.8 billion in potentially erroneous noncash charitable contributions in Tax Year 2010, which resulted in an estimated $1.1 billion reduction in tax. ... IRS controls are not sufficient to ensure taxpayers are complying with noncash charitable contribution reporting requirements. Statistical samples of Tax Year 2010 tax returns that claimed more than $5,000 in noncash charitable contributions showed that approximately 60 percent of the taxpayers did not comply with the noncash charitable contribution reporting requirements. These taxpayers claimed noncash contributions totaling approximately $201.6 million. Taxpayers who donate motor vehicles must attach a Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, to their tax returns. However, the IRS is still not effectively identifying taxpayers who are not complying with reporting requirements for donations of motor vehicles.
- Accounting Web, TIGTA to IRS: Get Tough on Noncash Charitable Contributions
- Bloomberg, Donors Claim $1.1 Billion Skirting Tax Laws, Audit Says
- Washington Examiner, Bad Santa? Taxpayers Overestimate Charitable Giving, Get Undeserved Tax Refunds
- Washington Post, IRS Failing to Enforce Reporting Requirements for Charitable Contributions