In emailed Chief Counsel Advice pursuant to a pending case, the IRS reviews the contemporaneous written acknowledgment requirements for gifts of conservation easements under section 170(f)(8)(A).
PGDC Editor's Note: The following document contains the acronym citation of ECC. A call to the IRS Office of Chief Counsel revealed this citation is a creation of Tax Analysts, Inc. and not the IRS. It refers to emailed Chief Counsel Advice the IRS must now release under IRC section 6110 pursuant to the decision in Tax Analysts v. Internal Revenue Service, 495 F.3d 676 (D. C. Cir. 2007). For further information on this case, see the attached Notice at the bottom of this page.
ECC 200848076
Full Text:
UILC: 170.18-00
Release Date: 11/28/2008
ID: CA_2008082713405950
From: * * *
Sent: Wednesday, August 27, 2008 1:41:01 PM
To: * * *
Cc: * * *
Subject: Conservation easement case
No deduction is allowed under § 170(a) for a qualified charitable contribution (including a qualified conservation contribution) of $250
or more unless the taxpayer substantiates the contribution by a
contemporaneous written acknowledgment
of the contribution by the donee organization. IRC § 170(f)(8)(A). If
an acknowledgment fails to contain the required information
or
the taxpayer fails to receive the acknowledgment within the required
time, § 170(f)(8)(A) is clear that no deduction under § 170 is allowed
(i.e., taxpayers may not cure the defect after the fact and receive a
whole or partial deduction). See, e.g.,
Addis v. Commissioner,
374 F.3d 881, 887 (9th Cir. 2004) (consequence of acknowledgment that
did not contain required information is total denial of deduction;
partial deduction foreclosed by statute), affg. 118 T.C. 528 (2002).
Content of acknowledgment. A contemporaneous written
acknowledgment with respect to the contribution of a conservation
easement to a donee organization must include the following
information:
1. a description (but not necessarily the value) of the property contributed;
2. whether the donee organization provided any goods or services in
consideration, in whole or in part, for the contributed property; and
3. if goods or services were provided in consideration for the
contributed property, a good faith estimate of the value of such goods
or services. IRC § 170(f)(8)(B); Reg. § 1.170A-13(f)(2).
"Goods or services" includes cash. Reg. § 1.170A-13(f)(5).
Timing of acknowledgment. The acknowledgment required
under § 170(f)(8)(A) is considered to be "contemporaneous" if the
taxpayer obtains the acknowledgment on or before the earlier of --
1. the date on which the taxpayer files a return for the taxable year in which the contribution was made, or
2. the due date (including extensions) for filing such return. IRC § 170(f)(8)(C); Reg. § 1.170A-13(f)(3).
A writing that: (1) does not acknowledge a
contribution
of property but, instead, merely evidences a sale of the property
(regardless of the actual value of the property) and (2) does not
include a statement of whether any goods or services have been provided
for the contribution is not a contemporaneous written acknowledgment
under § 170(f)(8). A writing that does contain the required information
under § 170(f)(8)(B) must be received by the taxpayer before the
taxpayer files its
original return for the taxable year in
which the contribution was made (or the due date, including extensions,
for filing that return -- whichever is earlier).
