- quote -

That's the job of the courts--Congress gave language and the
courts have to decide what the terms mean. In a number of
contexts involving tax matters, the courts have held that a
gift generally requires an intention to make a gift.

- quote -

Arguably yes, though documenting that fact prior to the
expiration of the statute (rather than "discovering" it
after the fact) would be important. The fact that they
didn't document it ahead of time suggests that it more
simple laziness, and not donative intent, that drove
them--and now they are trying to get something out of this.

- quote -

Well, the law doesn't tell us the state should send
one--rather, that a donor that wants to claim a charitable
deduction needs to have an acknowledgment of the donation by
the time he/she files their personal return.

Assuming someone gave more than $250 to one of those "check
the box" funds on state tax returns, the real question would
be whether anyone has *asked* to be sent such an
acknowledgment.

--
Ed Zollars, CPA
Phoenix, Arizona

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Ed Zollars, CPA wrote:
- quote -

I agree that intent (to give vs. being lazy) can be an
issue. However, intent is not part of the statutory
definition of what makes a contribution (even if implied in
the definition of a "gift without consideration").

- quote -

And I agree: The courts had to determine this because
statute didn't.

- quote -

Ah! Would it then be a gift if someone INTENTIONALLY waited
for the 3 year claim period to expire? :-)

- quote -

Related question:

On the California form 540 (back side), there is a section
for voluntary gifts to various state-operated funds (e.g.
wildlife preservation). I have never heard of the state
ever sending an acknowlegement letter for a $250+
contribution via the tax form. (I've also never seen anyone
who has actually made a $250+ contribution in this manner.)
Under the current IRC, the state should be sending an
acknowledgement letter.

Has anyone ever gotten one?

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MTW wrote:
- quote -

Technically, yes. It's too bad that there isn't a fine or
penalty on the charity for failure to issue an
acknowledgement. Why should a taxpayer be punished for an
action outside of his control?

- quote -


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D. Stussy wrote:

- quote -

I think the real question is not whether the governmental
entity is a charitable entity under Section 170(c) (it is),
but whether a charitable gift has taken place.

The Ninth Circuit had an interesting discussion of what
constitutes a charitable contribution in the the 1962 case
of DeJong v. Commission, 10 AFTR 2d 5863 (309 F.2d 373)
which upheld the prior Tax Court decision (36 TC 896). The
court indicated that the contribution needed to be intended
to be a gift.

Now, if that truly is the test here (and, admittedly, the
Ninth Circuit wasn't looking at exactly this issue), I would
suggest if the individual just *ignorantly* allowed the
statute to lapse, you don't have a charitable
contribution--rather, just a nondeductible loss. The
individual had no intention of making a contribution--they
just managed, through inaction, to make a transfer to the
Treasury.

If that logic prevailed, then someone who through "fouling
up" managed to miss qualifying for some tax benefit (like
some of the rules on the various employment incentive
credits) could argue he/she made a charitable contribution.
And I'm pretty sure the courts wouldn't go for that logic.

--
Ed Zollars, CPA
Phoenix, Arizona

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D. Stussy wrote:

- quote -

Wouldn't you need an acknowledgment letter if the amount was
over $250?

And wouldn't it be a hoot to receive a letter from the
government stating that you received ABSOLUTELY NOTHING in
exchange for your contribution? <g
MTW

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Herb Smith wrote:
- quote -

Here's a thought: Can a taxpayer who files a late return
such that he cannot actually get his refund entitled to a
charitable deduction for the amount of that refund on the
tax return that includes the period in which he filed [and
therefore recognized the forfeiture]?

Under IRC 170(c)(1), the U.S. Government itself is a
"qualified charity" and the purposes of which our tax money
is put certainly is "exclusively public purposes." A kept
refund is treated identically to tax money the government is
otherwise entitled to.

The forfeiture of the refund is not of a nature of a fine or
penalty as defined by IRC 162(f) as there is no "violation"
of [criminal] law.

I have not researched the issue nor have I ever heard of
anyone trying this.

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heljangal[at]aol.comnojunk (Helen P. OPlanick EA) wrote:

- quote -

My error. Thanks for catching that.

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety." (Benjamin Franklin)

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"D.F. Manno" <dommanno[at]netscape.net> wrote:
- quote -

Come again? Tax year 2001 is still open until 4/15/05.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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"D.F. Manno" <dommanno[at]netscape.net> wrote:
- quote -

All tax years prior to 2001 are closed (only 2001, 2002, and
2003 are still open for refunds. Looks like you waited way
too long. Your fellow taxpayers thank you for the donation
to the federal coffers.

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- quote -

Make that 2001.

Helen, EA in PA
50 miles, 3 days, 1 cause - Multiple Sclerosis Challenge Walk for the Cure
October 1 to October 3, 2004
Donate on-line at www.msandyou.org

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"bman" <zbryanz[at]cox.net> wrote:

- quote -

No chance. You blew it.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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"bman" <zbryanz[at]cox.net> wrote:

- quote -

Sorry, you're out of luck for any tax years before 2002.
Whoever told you that "there may be a chance" was wrong.

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety." (Benjamin Franklin)

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When I was young and irresponsible, I failed to file taxes. The IRS came
lookin for me. Long story short, I did all the taxes and found out I would
have received refunds adding up to a healthy ammount. The IRS says there
is a 3 year limmit on refunds, but they said there may be a chance. Does
anyone here have experience in the area? If so, what hoops need to be
jumped through?

Thanks,
bman

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