147 T.C. 557
T.C.2016Background
- 15 West 17th Street LLC (LLC) donated a historic preservation easement in 2007 and claimed a $64,490,000 charitable contribution on its 2007 partnership return.
- The donee, Trust for Architectural Easements (Trust), sent an acknowledgment in May 2008 that did not state whether any goods or services were provided in exchange.
- The IRS audited LLC, disallowed the deduction, and issued a FPAA; LLC petitioned the Tax Court in 2011.
- In 2014 (after litigation began), the Trust filed an amended Form 990 stating it received the easement in 2007 and that it provided no goods or services to LLC.
- The sole legal question presented on petitioner's motion for partial summary judgment: whether IRC §170(f)(8)(D) makes contemporaneous written acknowledgments (CWAs) unnecessary when a donee later files a Form 990 containing the §170(f)(8)(B) information absent Treasury regulations implementing donee reporting.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §170(f)(8)(D) is self‑executing so that a donee’s amended Form 990 can substitute for a contemporaneous written acknowledgment (CWA). | Petitioner: Trust’s amended Form 990 included the §170(f)(8)(B) information, so §170(f)(8)(D) makes the CWA unnecessary. | Commissioner: §170(f)(8)(D) depends on regulations "as the Secretary may prescribe" and is not operative until Treasury issues implementing regulations. | Court: §170(f)(8)(D) is a discretionary delegation and not self‑executing; the CWA requirement of §170(f)(8)(A) remains applicable. |
Key Cases Cited
- Addis v. Commissioner, 118 T.C. 528 (Tax Ct.) (strictness of §170(f)(8) CWA requirement)
- Francisco v. Commissioner, 119 T.C. 317 (Tax Ct.) (discussion of self‑executing statute analysis)
- First Chicago Corp. v. Commissioner, 88 T.C. 663 (Tax Ct.) (mandatory delegation "shall prescribe" treated as self‑executing)
- Occidental Petroleum Corp. v. Commissioner, 82 T.C. 819 (Tax Ct.) (holding statute with mandatory "shall" self‑executing)
- Estate of Maddox v. Commissioner, 93 T.C. 228 (Tax Ct.) (mandatory delegation and self‑execution)
- Hillman v. Commissioner, 114 T.C. 103 (Tax Ct.) (analysis of delegation language; appellate reversal noted in opinion)