BNA's Daily Tax Report yesterday [subscription required] reported that a group of 280 nonprofit organizations (including religious ones) signed onto a July 20 letter urging Sens. Charles Grassley (R-Iowa) and Max Baucus (D-Mont.) to adopt recommendations on the donation of noncash gifts contained in a June Independent Sector report.
The letter recommended continuing to base noncash donations on fair market value--as well as strengthening the definition of a qualified appraisal and appraiser, as recommended by the Independent Sector report. (Full text of Independent Sector report.)
The letter from the nonprofits also urged adoption of several other recommendations from the report, including expansion of penalties on taxpayers who grossly inflate valuations, imposing penalties on appraisers who make such valuations and mandating of electronic filing of Forms 8282, Donee Information Return, and 8283, Noncash Charitable Contributions. It continued: "As you are considering reforms relating to the donation of noncash gifts, we urge you to move with caution," the letter said, "given the importance of such donations to many kinds of charities." [Thanks to Steven Sholk for this information.]
