Taxpayers Erroneously Report Noncash Charitable Contributions
The IRS has released findings from the Treasury Inspector General for Tax Administration (TIGTA), that states approximately 60 percent of taxpayers who claim large noncash contributions may be reporting them erroneously.
Typically, a taxpayer can claim a noncash contribution to a charity or qualifying organization, but there are reporting requirements for donations related to Motor Vehicles, Boats and Airplanes.
These requirements include the attachment of Form 1098-C, which TIGTA says the IRS is not effectively identifying that these forms are included with the return, and finding that overstatements of the valuation of these deductions are costing the IRS approximately $3.8 Billion.
The IRS is expanding its analysis of these deductions, and will clarify reporting instructions moving forward.
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