Month: January 2013

Gift Horse

IRS controls are not sufficient to ensure taxpayers are complying with noncash charitable contribution reporting requirements. That may be changing after a report issued by the Treasury Inspector General for Tax Administration (TIGTA).

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.

TIGTA recommended that the IRS expand procedures to identify tax returns claiming noncash charitable contributions that do not have a Form 8283 (Noncash Charitable Contributions), or qualified appraisal attached when required, and develop processes to systemically verify the accuracy of noncash charitable contributions