Large Gift to Goodwill Results in IRS Penalty
Large Gift to Goodwill Results in IRS PenaltyA large charitable deduction raised an IRS red flag. A couple was audited after they claimed total charitable write-offs of $145,250 for property donated to Goodwill. Because they couldn’t prove the value of the items donated, the Tax Court disallowed all but $250 of theirdeduction and slapped them with the 20% penalty for negligence. Contact us if you’re unsure about the documentation rules for your charitable cash and non-cash donations. Ohde, TC Memo. 2017-137 |