Case: U.S. Tax Court Upholds IRS Decision to Disallow Deduction for Unsubstantiated Noncash Charitable Contributions (T.C.) (IRC §170)

The U.S. Tax Court upheld the IRS’s determination, stating that the taxpayers were not entitled to deduct $188,563 for noncash charitable contributions. Taxpayers, a married couple, claimed a deduction on their 2019 tax return for donating high-end cycling equipment and apparel to a charitable organization. They reported the fair market value as $188,563 on Form 8283 and indicated an appraisal was used to determine the value, but did not include an appraisal with their return. The IRS examined the return and disallowed the deduction. The Tax Court held that Taxpayers failed to meet the substantiation requirements for noncash charitable contributions ...