Tax Court In Brief | Albrecht v. Commissioner | Charitable Contributions And Contemporaneous Written Acknowledgements

• Published date: 30 May 2022
• Subject Matter: Tax, Income Tax, Tax Authorities
• Law Firm: Freeman Law
• Author: Freeman Law

The Tax Court in Brief - May 23rd - May 27th, 2022

Freeman Law's "The Tax Court in Brief" covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation: The Week of May 23rd, 2022, through May 27th, 2022

• Genecure, LLC v. Comm'r, T.C. Memo 2022-52 | May 23, 2022 | Jones, J. | Dkt. No 14916-15.

Albrecht v. Comm'r, T.C. Memo 2022-53 | May 25, 2022 | Greaves, J. | Dkt. No. 13314-20.

Opinion

Short Summary: Martha Albrecht donated 120 items of Native American jewelry and artifacts (donation) to the Wheelwright Museum of the American Indian (Museum). Pursuant to the express terms of a "Deed of Gift" (deed), Albrecht transferred all her rights in the property, unless otherwise stated in a separate Gift Agreement. The Gift Agreement was not included with the deed, and the Museum did not provide Albrecht with any further written documentation concerning the donation. Albrecht filed Form 1040, U.S. Individual Income Tax Return, for the year at issue in which she reported the donation on Schedule A, Itemized Deductions, and attached a copy of the deed. The return was examined, and the IRS disallowed the donation on the ground that the requirements of section 170 were not met. Albrecht sought review in the Tax Court.

Key Issue:

• Whether Albrecht, through the deed and the Gift Agreement satisfied the contemporaneous written acknowledgement requirements of 26 U.S.C. ' 170(f)(8)(B) to receive a charitable contribution deduction for the donation to the Museum?

Primary Holdings:

• No. Neither the deed nor the Gift Agreement specified whether the Museum provided any goods or services in return for the donation, and such an acknowledgement is a statutory and regulatory requirement for a taxpayer to receive a tax deduction for a charitable contribution. And, the deed did not indicate it constituted the entire agreement of the parties or that any prior understandings between Albrecht and the Museum were merged into the deed.

Key Points of Law:

• Burden of Proof. The IRS's determinations in a notice of deficiency are generally presumed correct, and the taxpayer bears the burden of proving that the determinations are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). The taxpayer bears the burden of proving entitlement to any deduction claimed. INDOPCO, Inc. v....