Ullmann & Company, PC
Large Gift to Goodwill Results in IRS Penalty

A 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


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Ullmann & Company, P.C.
4647 N. 32nd Street
Suite 220
Phoenix, AZ 85018
(602) 224-0166
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