Abstract
This Article critically examines the substantiation regime for charitable contributions. It begins by reviewing two reasons why the income tax charitable contribution substantiation rules merit consideration. First, the charitable contribution deduction is important for both its size and its distribution, and the substantiation rules work to safeguard its integrity. Second, in the case of the charitable contribution, unlike many other income tax provisions, the Treasury and the Internal Revenue Service cannot look to third parties with self-interested incentives that help ensure compliance. The substantiation rules substitute for third party corroboration. Part III of the Article sets out, as briefly as possible, the complicated regime regarding the substantiation of charitable contributions, including the legislative history and applicable regulations. Part IV examines applicable case law. Review of legislation, regulations, and case law suggests strongly that we make an effort to reform the current scheme; in turn, Part V presents a number of possible reforms. These suggestions include inflation adjustments, regulatory changes, and making greater use of technology. Finding approaches that appropriately balance the need to control overvaluation with the need to encourage legitimate charitable contributions is a difficult but important challenge.
Recommended Citation
Ellen P. Aprill,
Reforming the Charitable Contribution Substantiation Rules,
14 Fla. Tax Rev.
(2013).
Available at: https://scholarship.law.ufl.edu/ftr/vol14/iss1/7