T.C. Sum m ary Opi ni on 20 15 -2 6

UNITED STAT ES TAX COURT

ROBERTA LEE HOWE, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 21 36 0- 13 S. Fi le d Ap ril 9, 2 01 5.

Ro be rtaLee Howe , pro se. Je ffre y L. Hein ke l, Eri n Kat hl eenSal el , andDon naL. Cros by, for res po nd en t.

SUMM ARY OPINION NEGA, Jud ge : Th is cas e was he ardpu rs ua ntto th e p ro vi si on s o f se ct io n 74 63 of t he Int ern al Rev enue Co de ineffec t wh enth e p et it io n was fil ed . Purs ua nt to sec ti on 74 63 (b ), th e d eci si on to be en te redis no t re vi ewab le by any othe r co urt, an d thi s o pi ni on sh al l n otbe tre at edas p rece de ntforan y othe r cas e. Unl es s- 2 -

ot he rwis e in di cat ed , all subs eque ntsec ti on refe ren ces are t o the Int ern al Rev enue Co de ineffe ctforth e y ears inis su e, an d a ll Ru le refe ren ces are t o the Tax C ou rt Ru le s o f Prac ti ce an d P ro cedur e. Res po nd en t d et erm in edde fic ie nc ie s o f $1 ,03 5 and$2 ,48 6 i n p et it io ne r’s Fed eral in co m e ta x fo r ta x years 2 01 0 and20 11 , res pe ct iv el y . In ac co rd an ce wi th th e p art ie s’ st ip ul at io ns , th e o nl y rem ai ni ng is su e fo r de ci si onis whet he r pe ti ti on er is en ti tl edto de du ct io ns forco nt rib ut io ns of n on cas h p ro pe rty to v ari ou s ch ari tabl e or ga ni zat io ns . Bac kg ro un d So m e o f th e fac ts ha ve be enst ip ul at edan d are s o fo un d. Pe ti ti on er re si de d inCal ifo rn iaat t he ti m e sh e fi le d h er p et it io n. Pet it io ne r ti m el y

fil edhe r 20 10 an d 2 01 1 F ed eral in co m e ta x re tu rn s. On he r 20 10 tax return, s he cla im edde du ct io ns of $ 7,1 00 forcas h c on tri bu ti on s t o ch ari ty and$2 ,50 0 fo r no nc as h c on tri bu ti on s t o c ha rit y . On h er 2 01 1 t ax return, sh e cl ai m eda de du ct io n o f $4 ,40 0 fo r cas h c on tri bu ti on s t o c ha rit y . For t ax y ear 20 10 res po nd en t al lo wedde du ct io ns of $ 20 0 fo r cas h c on tri bu ti on s t o c ha rit y an d $2 ,50 0 fo r no nc as h c on tri bu ti on s t o c ha rit y . For t ax y ear 2 01 1 re sp on de ntall owe d de du ct io ns of $ 38 0 fo r cas h c on tri bu ti on s t o c ha rit y an d $ 1,0 00 forno nc as h- 3 -

co nt rib ut io ns to ch ari ty eventh ou gh pe ti ti on er d idno t o rig in al ly clai m a de du ct io n fo r an y no nc as h c on tri bu ti on s t o c ha rit y on he r 20 11 return. Pet it io ne r ackno wled ge d tha t the ori gi na l cl ai m edcas h c ha rit ab le co nt rib ut io n d educ ti on am ou nt s wer e in co rrec t b utst at edto res po nd en t tha t the y sh ou ldha ve be enrep orte d a s n on cas h c ha rit ab le co nt rib ut io n d educ ti on s. Durin g 20 10 an d 2 01 1 p et it io ne r do na te d t o v ari ou s ch ari ti es ho us eh ol d i te m s s he ha d in he rit edfro m

he r paren ts , who di edbe fo re the tax y ears inis su e, an d fr om he r si st er, wh o d ie d i n 2 01 0. Pe ti ti on er m ad e d on at io ns to th e Bar as Fo un da ti on (Bar as ) an d t o the Ani m al Pro te ct io n & Res cu e Leag ue (APRL). To s up po rt h er cl ai m edde du ct io ns forth e d on at io ns , pet it io ne r subm it te d v ari ou s re cei pt s fr om Bara s an d APRL. Mos t o f th e rec ei pt s l ackon e o r m or e o f th e fo ll owi ng : ty pe of pr op erty do na te d, v al ue of p ro pe rty do na te d, s ig na tu re o f an y on e act in g o n b eh al f of th e d on ee o rg an iz at io n, o r a s ta te m en t t o the effe ctth atno go od s o r se rv ic es were re nd eredinex ch an ge forth e d on at edpro pe rty. T he fol lo win g t ab le rep res en ts th e rec ei pt s p et it io ne r subm it te d t o s ub st an ti at e h er d on at io ns to ch ari ty: Don ee Pro pe rty do na te d Valu e Date Si gn atur e Bara s --- --- 2/ 20 10 --- APRL TVs --- 2/ 20 /2 01 0 C. Su itre APRL Furn itur e $5 00 4/ 7/ 20 10 Lesl ie Ped ers en- 4 -

Bara s TVs, st ereo s, li vi ng roo m

furni tu re --- 10 /2 01 0 --- APRL Cl ot he s an d b lank et s --- 10 /8 /2 01 0 Lesl ie Ped ers en Bara s --- 50 0 2/ 20 11 --- Bara s --- --- 3/ 20 11 --- Bara s --- 15 0 5/ 20 11 --- Bara s --- --- 8/ 20 11 --- APRL TV, wash er, dry er, fu rn itur e 60 0 8/ 7/ 20 11 Olg a Co rte s Bara s --- --- Ill eg ib le --- Pet it io ne r subm it te d t o the Co urt d on at io n g ui de s fr om Goo dwi ll an d the Sal va ti on Arm

y th atsh e u se d t o a ss es s the va lu e o f cl ot hi ng do na te d t o B aras an d APRL. Altho ug h o nl y

on e rec ei ptrefl ect s a d on at io n fo r cl ot he s, an d tha t re cei pt do es no t p la ce a v al ue on th e cl ot he s d on at ed , pet it io ne r cl ai m s a d educ ti on of $1 ,84 8 fo r cl ot he s d on at edto ch ari ty. Pet it io ne r’s ha nd writ te n n ot es ass ig n the m ax im um reco m m en de d v al ue to each it em of c lo th in g d on at ed , exc ep t fo r th ree co at s, t o wh ic h s he ass ig ne d l owe r va lu es th anth os e rec omm en de d b y th e Goo dwi ll do na ti on gu id e. The h an dwr it te n n ot es do no t d es cri be th e ag e o r co nd it io n o f th e cl ot hi ng do na te d. Tria l i n thi s ca se was h el d o n Oct ob er 2 8, 2 01 4. Attri al pe ti ti on er subm it te d a m en de d re cei pt s wh ere s he ha d fi ll edinm an y of t he m is si ng fie ld s- 5 -

refl ect edon th e ab ov e tabl e. On cr os s- ex am in at io n, p et it io ne r adm it te d t o h av in g fil le d i n tho se va lu es onth e n ig htbe fo re tria l. Dis cu ss io n I. Bu rd enof P ro of The Co m m is si on er’s d et erm in at io n a s t o atax pa y er’s t ax li ab il ity is pr es um edco rrec t, an d the tax pa y er b ears th e b ur de n o f pr ov in g o th erwi se . See Ru le 14 2( a); W el chv. Hel ve rin g, 2 90 U.S. 11 1, 1 15 (19 33 ). Dedu ct io ns are a m at te r of leg is la ti ve gra ce. Dep ut y v. du P on t, 3 08 U.S. 48 8, 4 93 (19 40 ); Ne w Co lo ni al Ice Co . v. Hel ve rin g, 2 92 U.S. 43 5, 4 40 (19 34 ). Taxp ay ers m us t co m pl y with s pe ci fic requi rem en ts foran y de du ct io ns cla im ed . See INDOPCO, In c. v. Co m m is si on er, 5 03 U.S. 79 , 84 (19 92 ); Ne w Col on ia l Ic e Co . v. Hel ve rin g, 2 92 U.S. at 4 40 . Taxp ay ers m us t al so m ai nt ai n a de qu at e rec or ds to subs tant ia te th e am ount s o f an y

cred it s an d d educ ti on s. See sec . 60 01 ; s ec. 1 .60 01 -1 (a), In co m e Tax Reg s. II. Ch ari tabl e Co nt rib ut io ns Sect io n 1 70 (a)( 1) all ows as ade du ct io n any char it ab le co nt rib ut io n m ad e withi n the tax ab le y ear. Tax pa y ers m us t s at is fy

cert ai n s ta tu to ry

an d re gu la to ry subs tant ia ti on requi rem en ts inord er t o d educ t ch ari tabl e co nt rib ut io ns . See i d.; se c. 1.1 70 A-1 3, In co m e Tax Reg s. Th e n atur e o f th e requi redsubs tant ia ti on- 6 -

de pe nd s o n the si ze o f th e co ntrib ut io n andon whet he r th e co nt rib ut io n c on si st s o f cas h o r pr op erty . For a ll do na ti on s o f pr op erty , th e ta xp ay er s ho ul d m ai nt ai n fo r each co nt rib ut io n arece ip t fr om th e d on ee o rg an iz at io n d et ai li ng th e n am e o f th e do ne e o rg an iz at io n, the da te an d l oc at io n o f th e co nt rib ut io n, an d ade sc rip ti on of th e p ro pe rty in d et ai l re as on ab ly suf fic ie ntun de r th e ci rcu m st an ces . Sec. 1 .17 0A13 (b )(1 ), In co m e Tax Reg s. If the do na ti on is m ad e und er ci rcum st an ces wher e ob ta in in g arece ip t i s i m

pr act ic al , su chas b y

lea vi ng pro pe rty at a ch ari ty’ s un at te nd eddo na ti on si te , th e ta xp ay er s ha ll m ai nt ai n wri tt enreco rd s co nt ai ni ng cert ai n i nf

orm at io n o n the do na ti on . Id. Co nt rib ut io ns of $ 25 0 o r m or e in pro pe rty m us t b e subs tant ia te d b y

a co nt em po ran eo us writte n a ckno wled gm en t fr om th e d on ee o rg an iz at io n tha t co nt ai ns a de sc rip ti on of the pro pe rty con tri bu te d anda st at em en t d et ai li ng whe th er the do ne e p ro vi de d any go od s an d s erv ic es inex ch an ge forth e d on at io n, an d i f so , a de sc rip ti on an d g oo d- fai th est im at e o f th e v al ue of a ny suc h g oo ds an d se rv ic es gi ve n i n c on si de rat io n fo r th e co nt rib ut io n. Se c. 17 0( f)(8 )(A) an d (B ). An ac kn owl ed gm en t i s co ns id eredco nt em po ran eo us if the tax pa y er o bt ai ns th e ackno wled gm en t o n o r be fo re the earl ie r of (1) th e d at e o n wh ic h the tax pa y er fi le s a return fo r th e ta xabl e y ear i n wh ic h the co nt rib ut io n was m ad e, or (2) th e due da te (in cl ud in g e xt en si on s) for fil in g tha t re tu rn . Sec. 1 70 (f)(8 )(C) . Whe n the- 7 -

cl ai m edva lu e o f th e d on at edpro pe rty exce ed s $ 50 0, t ax pa y ers m us t: (1) m eetth e in fo rm at io n re qu ire m en ts fordo na ti on s o f $2 50 or m or e, (2 ) m ai nt ai n re co rd s wi th a m or e d et ai le d d es cri pt io n o f th e p ro pe rty, inc lu di ng th e m an ne r an d app ro xi m at e da te of a cqui si ti on an d c os t o r ot he r ba si s i n the pro pe rty, and(3) in cl ud e certa in in fo rm at io n wi th th e return. Se c. 17 0( f)(1 1) (B); sec . 1.1 70 A-1 3( b) (3 )(i )(A) an d (B), In co m e Tax Reg s. If the tax pa y er h as reas on ab le cau se forno t b ei ng ab le to pr ov id e th e acqui si ti on da te or t he co stba si s i n the do na te d p ro pe rty, the tax pa y er m ay att achanex pl an at ory

st at em en t t o h is or h er t ax return t o b e ex cu se d fr om th es e requi rem en ts . Sec. 1 .17 0A- 13 (b )(3 )(i i), In co m e Tax Reg s. Fo r co ntrib ut io ns of l es s tha n $ 25 0, ea chco nt rib ut io n i s treat edsep arat el y fo r pu rp os es of t he sec ti on 17 0( f)(8 ) requi rem en ts . See s ec. 1 .17 0A- 13 (f)(1 ), In co m e Tax Reg s. Fo r pu rp os es of t he sec ti on17 0( f)(1 1) requi rem en ts , co nt rib ut io ns of “ si mil ar i te m s o f pr op erty ” are ag gr eg at edinde te rm in in g wh ethe r th e $ 50 0 thr es ho ldha s b eenex ceed edan d wh ethe r th e at te nd an t s ub st an ti at io n requi rem en ts ha ve be enm et . Sec. 1 70 (f)(1 1) (F). The ph ras e “ si m il ar i te m s o f pr op erty ” m ean s p ro pe rty tha t fa ll s i nt o the same gen eral cat eg ory or t y pe , su chas furn itur e, el ectro ni c equi pm en t, o r cl ot hi ng . Sec. 1 .17 0- 13 (c)( 7) (ii i), In co m e Tax Reg s.- 8 -

A. Co nt rib ut io ns of $ 25 0 o r Mo re All co nt rib ut io ns of $ 25 0 o r m or e m us t b e subs tant ia te d b y

a co nt em po ran eo us writte n a ckno wled gm en t fr om th e d on ee o rg an iz at io n. Se c. 17 0( f)(8 )(A). Pet it io ne r admit te d t o m od ifyin g the rece ip ts fro m Bara s an d APR L on th e ev e o f tr ia l b y

ad di ng est im at edfai r m ark etva lu es an d m or e d et ai le d de sc rip ti on s o f th e p ro pe rty do na te d. Th es e m od ifi edrece ip ts do no t co ns ti tu te co nt em po ran eo us writte n a ckno wled gm en ts fro m Bara s o r APRL, an d the Co urt wil l n otrel y

on th em forpu rp os es of d et erm in in g wh ethe r pe ti ti on er h as m etth e subs tant ia ti on requi rem en ts . Ins te ad , th e Co urt wi ll rel y on ly on the un m od ifi ed rece ip ts , th e co nt en ts of wh ic h are l ai d o utinth e tabl e supr a p p. 3 -4 . Of th e unm od ifi edrece ip ts subm itte d t o the Co urt, o nl y fou r co nt ai n do na ti on va lu es . Two rece ip ts co nt ai n d on at io n v al ue s o f $5 00 , whi chm ean s the y m us t m eetth e subs tant ia ti on requi rem en ts fordo na ti on s o f $2 50 -$ 50 0. Th e fi rs t rece ip t, fo r fu rn itur e d on at edto APRL on Apri l 7 , 20 10 , fai ls to m eetth e subs tant ia ti on requi rem en ts be cau se (1) “ furn itur e” i s n ota de sc rip ti on th atis reas on ab ly suf

fic ie ntun de r th e ci rcu m st an ces , and(2) itdo es no t co nt ai n a st at em en t as to whet he r any go od s an d s erv ic es were re nd eredby A PRL in ex ch an ge forth e fu rn itur e. See s ec. 1 70 (f)(8 )(A) an d (B ); s ec. 1 .17 0A- 13 (b )(1 ), In co m e Tax Reg s. Th e se co ndrece ip t, fo r pr op erty do na te d t o B aras inFeb ru ary- 9 -

20 11 , fai ls to m eetth e subs tant ia ti on requi rem en ts be cau se it(1) co nt ai ns no de sc rip ti on of t he pro pe rty do na te d and(2) do es no t s ta te whet he r Bar as ren de red an y go od s an d s erv ic es inex ch an ge forth e d on at edpro pe rty. See sec . 17 0( f)(8 )(A) an d (B ). B. Co nt rib ut io ns Exce ed in g $ 50 0 Co nt rib ut io ns of p ro pe rty exce ed in g $ 50 0 i n v al ue m us t b e fu rth er subs tant ia te d wi th in fo rm at io n abo ut(1) th e ap pr ox im at e d at e th e p ro pe rty was acqui redan d the m an ne r of it s ac qu is it io n; (2) a de sc rip ti on of the pro pe rty in de ta il reas on ab le un de r th e ci rcu m st an ces ; (3 ) th e co stor o th er b as is inth e pr op erty ; (4 ) th e fai r m ark etva lu e o f th e p ro pe rty; an d (5 ) th e m etho d u se d i n de te rm in in g i ts fai r m ark etva lu e. Sec. 1 .17 0( A)-1 3( b) (2 )(i i)( C) an d (D) , (3) (i) (A) an d (B ), In co m e Tax Reg s. Th e ta xp ay er m us t i nc lu de with h is return “ a de sc rip ti on of s uc h p ro pe rty andsu chothe r in fo rm at io n a s the Secr et ary m ay requi re.” Se c. 17 0( f)(1 1) (B). Pet it io ne r pr ov id edon e rec ei ptfor pro pe rty exce ed in g $ 50 0 i n v al ue fora do na ti on onAug us t 7 , 20 11 , of a“ TV, wash er, dry er, [an d] furni ture” t o APR L. Pet it io ne r di d n otpro vi de th e requi redin fo rm at io n u nd er s ect io n 1 70 (f)(1 1) (B) reg ard in g the Aug us t 7 , 20 11 , do na ti on to APRL, su chas t he ap pr ox im at e d at e an d m an ne r of

acqui si ti on or c os t o r ot he r ba si s i n the pro pe rty, nordi d s he att ach- 10 -

anex pl an at ory

st at em en t d et ai li ng why su chin fo rm at io n was un av ai labl e. See s ec. 1 .17 0A- 13 (b )(3 )(i i), In co m e Tax Reg s. Inad di ti on , th e d es cri pt io ns of th e d on at edit em s ar e n otsu ffi ci en tl y de ta il ed , andth e rec ei ptdo es no t s ta te whe th er APRL p ro vi de d any go od s an d s erv ic es inex ch an ge forth e d on at io n. See s ec. 1 70 (f)(8 )(A) an d (B ). Acco rd in gl y , th is rece ip t d oe s n otm eetth e subs tant ia ti on requi rem en ts fordo na ti on s ex ceed in g $ 50 0 i n v al ue . C. Rem ai ni ng Co nt rib ut io ns The rem ai ni ng rece ip ts pe ti ti on er s ub mit te d t o the Co urt l ackdo na ti on va lu es . The fai r m ark etva lu e o f co nt rib ut edpro pe rty needno t b e st at edon th e rece ip t, b utitis on e o f th e ci rcu m st an ces to be co ns id eredwhen de te rm in in g the am ountof d et ai l i nc lu de d o n the rece ip t. Sec . 1.1 70 A-1 3( b) (1 )(i ii ), In co m e Tax Reg s. Ex cep t fo r th e rec ei ptfro m Bara s wi th anil le gi bl e d at e, th es e rec ei pt s m eet two of the m in im

um requi rem en ts forco nt rib ut io ns of p ro pe rty--na m el y , th ey each li stth e n am e o f th e d on ee o rg an iz at io n andth e d at e an d l oc at io n o f th e co nt rib ut io n. Se e se c. 1.1 70 A-1 3( b) (1 ), In co m e Tax Reg s. Ho wev er, the y fai l t o de sc rib e th e co nt rib ut edpro pe rty in d et ai l re as on ab ly suf fic ie ntun de r th e ci rcu m st an ces . See i d. Th e rec ei pt s fr om Bara s d at edFeb ru ary 20 10 , Marc h 20 11 , andAug us t 2 01 1 andth e rec ei ptwith an i ll eg ib le date co nt ai n n o de sc rip ti on of t he co ntrib ut edpro pe rty at al l. The Feb ru ary 20 an d Oct ob er 8 ,- 11 -

20 10 , do na ti on s t o APR L st at e o nl y th at“ TVs” an d “ cl ot he s an d b lank et s” were do na te d b utdo no t g iv e an y furth er d es cri pt io n a s t o the se it em s. Lik ewis e, th e Octo be r 20 10 rece ip t fr om Bara s l is ts “ TVs, st ereo s, l iv in g ro om furni tu re” b ut do es no t p ro vi de su ffi ci en t d et ai l u nd er the cir cu m st an ces . Thes e rec ei pt s ar e in su ffi ci en t t o p ro vi de subs tant ia ti on forpe ti ti on er’s cl ai m edde du ct io ns . III. Co nc lu si on Pet it io ne r ha s fa il edto carry he r bu rd enof p ro vi ng he r en ti tl em en t t o the cl ai m edde du ct io ns forch ari tabl e co nt rib ut io ns . Becau se pe ti ti on er d idno t s at is fy th e subs tant ia ti on requi rem en ts , we are u nabl e to all ow h er an y de du ct io n i n ex ces s o f wha t re sp on de ntha s al read y all owe d. Inreac hi ng ou r ho ld in g, we h av e co ns id eredall arg um en ts m ad e, an d, t o the ex te ntno t m en ti on edab ov e, we co nc lu de th ey are m oo t, i rrel ev an t, o r witho ut m eri t. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redun de r Ru le 15 5.