Durden v. Comm'r
103 T.C.M. 1762
Tax Ct.2012Background
- Petitioners Durden filed a 2007 jointly filed return claiming $25,171 in charitable deductions, mostly to NCC.
- NCC is a 501(c)(3) organization eligible to receive tax-deductible contributions.
- Respondent issued a deficiency and an accuracy-related penalty (which was conceded).
- Petitioners provided copies of canceled checks and NCC acknowledgments for 2007 contributions totaling $22,517.
- First acknowledgment from NCC (Jan 10, 2008) did not state whether any goods/services were provided in exchange for the contributions.
- Second acknowledgment (June 21, 2009) stated no goods/services but was not contemporaneous; the court did not consider it.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the $250+ charitable deduction is substantiated. | Durden argues substantial compliance suffices. | Comm'r argues strict compliance required under 170(f)(8). | Deduction disallowed; not substantially substantiated. |
Key Cases Cited
- Samueli v. Commissioner, 132 T.C. 336 (2009) (substantial compliance may suffice in some contexts)
- Addis v. Commissioner, 118 T.C. 528 (2002) (courts may look beyond a written acknowledgment in some cases)
- Hewitt v. Commissioner, 109 T.C. 258 (1997) (purpose of contemporaneous acknowledgment to assist taxpayers and the IRS)
- Bond v. Commissioner, 100 T.C. 32 (1993) (substantial compliance when essential information is provided on tax forms)