Coming to Grips With the New Charitable Gift Substantiation RegsComing to Grips With the New Charitable Gift Substantiation Regs

In the summer of 2018, the Internal Revenue Service issued final regulations on charitable gift substantiation (the new regs). The new regs are generally effective as of July 30, 2018, although as discussed below, there’s a delayed effective date for Treasury Regulations Section 1.170A-17, dealing with qualified appraisals and appraisers.¹ 

The new regs aren’t based on recent changes to the Internal Revenue Code. They deal with the fact that the IRC has been amended piecemeal in gift substantiation matters since 1993.²

One can be sure, based on numerous Tax Court cases, that IRS audit agents will attempt to use the new regs to disallow many claimed federal income tax charitable deductions.

Here’s some useful information that practitioners s...