Notice 2005–44 - Charitable Contributions of

Part III. Administrative, Procedural, and Miscellaneous
Charitable Contributions of
Certain Motor Vehicles, Boats,
and Airplanes
Notice 2005–44
SECTION 1. PURPOSE
This notice provides interim guidance
regarding section 884 of the American
Jobs Creation Act of 2004, Pub. L. No.
108–357, 118 Stat. 1418 (2004), which
adds §§ 170(f)(12) and 6720 to the Internal Revenue Code. Section 170(f)(12)
contains rules for determining the amount
that a donor may deduct for a charitable
contribution of a qualified vehicle the
claimed value of which is more than $500,
and related substantiation and information
reporting requirements. Section 6720 imposes penalties on a donee organization
that receives a contribution of a qualified vehicle subject to § 170(f)(12) and
knowingly furnishes a false or fraudulent
acknowledgment of the contribution to
the donor, or knowingly fails to furnish
the acknowledgment. Sections 170(f)(12)
and 6720 apply to contributions made after December 31, 2004. This notice also
invites comments from the public regarding this notice and suggestions for future
guidance under §§ 170(f)(12) and 6720.
The rules provided in this notice apply
until regulations are effective.
SECTION 2. BACKGROUND
Section 170(a) allows as a deduction,
subject to certain limitations, any charitable contribution (as defined in § 170(c)),
payment of which is made within the taxable year. Section 1.170A–1(c)(1) of the
Income Tax Regulations provides that if a
charitable contribution is made in property
other than money, the amount of the contribution is the fair market value of the property at the time of the contribution, reduced
as provided in § 170(e) and §§ 1.170A–4
and 1.170A–4A.
In general, § 1.170A–1(h) provides that
if a taxpayer transfers to a charitable organization cash or property that is partly a
charitable contribution and partly in consideration for goods or services, the taxpayer is allowed a charitable contribution
deduction for the excess, if any, of the

2005–25 I.R.B.

cash or fair market value of the property
transferred over the fair market value of
the goods or services the organization provides in return. See also United States
v. American Bar Endowment, 477 U.S.
105, 117–118 (1986); Rev. Rul. 67–246,
1967–2 C.B. 104.
Section 170(f)(12)(A)(i) provides that
no deduction is allowed under § 170(a)
for a contribution of a qualified vehicle the claimed value of which is more
than $500 unless the donor substantiates
the contribution by a contemporaneous
written acknowledgment that meets the
requirements of § 170(f)(12)(B). Section
170(f)(12)(A)(i) also provides that the
substantiation rules of § 170(f)(8) do not
apply to a contribution of a qualified vehicle the claimed value of which is more
than $500.
In general, to meet the requirements
of § 170(f)(12)(B), the acknowledgment
must include: the name and taxpayer identification number of the donor; the vehicle identification number; and certain certifications, depending on the use or disposition of the vehicle by the donee organization. See section 3.03 of this notice for
all of the requirements applicable to acknowledgments. To be considered contemporaneous, the acknowledgment must
be obtained within 30 days of the contribution or the disposition of the vehicle by
the donee organization, as applicable. See
§ 170(f)(12)(C) and section 3.03 of this notice. A copy of the acknowledgment must
be included with the donor’s tax return on
which the deduction is claimed. Section
170(f)(12)(E) defines a qualified vehicle
as any (i) motor vehicle manufactured primarily for use on public streets, roads, and
highways, (ii) boat, or (iii) airplane, but
the term does not include any property described in § 1221(a)(1) (e.g., property held
primarily for sale to customers).
If a donee organization sells a qualified
vehicle without any significant intervening
use or material improvement by the donee
organization, the deduction allowed under
§ 170(a) may not exceed the gross proceeds received from the sale, which must
be reported on the acknowledgment. See
§ 170(f)(12)(A)(ii). Section 170(f)(12)(F)
provides that the Secretary may prescribe
regulations or other guidance that exempts

1287

from the gross proceeds limitation and
certain certification requirements sales by
the donee organization that are in direct
furtherance of the organization’s charitable purpose. Section 170(f)(12)(F) also
provides that the Secretary shall prescribe
such regulations or other guidance as may
be necessary to carry out the purposes of
§ 170(f)(12).
SECTION 3. DEDUCTIONS IN
EXCESS OF $500
3.01 General rule
If the claimed value of a donated qualified vehicle exceeds $500, the amount
of the deduction may be limited under
§ 170(f)(12), depending on the use of the
qualified vehicle by the donee organization (as described in section 3.02 of this
notice). In addition, under § 170(f)(12)
the donor must obtain from the donee organization an acknowledgment that meets
the requirements of section 3.03 of this
notice, and include the acknowledgment
with the tax return on which the deduction
is claimed.
3.02 Disposition or use by donee
organization
(1) Qualified vehicle sold by donee
organization
If the qualified vehicle is sold by the
donee organization without a significant
intervening use or material improvement
by the donee organization, then (except as
provided in section 3.02(3) of this notice)
the deduction claimed by the donor may
not exceed the gross proceeds received
from the sale of the qualified vehicle. In
no event may the deduction for a donated
vehicle exceed the amount that is otherwise allowable under § 170(a) (fair market
value). The donor must obtain from the
donee organization an acknowledgment
that meets the requirements of section 3.03
of this notice.
(2) Significant intervening use of or
material improvement to a qualified
vehicle
If the donee organization makes a significant intervening use of (within the

June 20, 2005

meaning of section 7.01(1) of this notice)
or material improvement to (within the
meaning of section 7.01(2) of this notice)
a qualified vehicle, the donor is not subject to the gross proceeds limitation in
section 3.02(1) of this notice. However,
the deduction claimed by the donor may
not exceed the fair market value of the
qualified vehicle. The donor must obtain
from the donee organization an acknowledgment that meets the requirements of
section 3.03 of this notice. In addition,
the donor must substantiate the fair market value as described in section 5 of this
notice.
(3) Qualified vehicle sold at a price
significantly below fair market value
(or gratuitously transferred) to needy
individual in direct furtherance of donee
organization’s charitable purpose
Pursuant to § 170(f)(12)(F), the Internal Revenue Service and the Treasury Department hereby provide that the gross proceeds limitation in section 3.02(1) does
not apply to a sale on or after January 1,
2005, of a qualified vehicle to a needy individual at a price significantly below fair
market value, or a gratuitous transfer to a
needy individual, in direct furtherance of
a charitable purpose of the donee organization of relieving the poor and distressed
or the underprivileged who are in need of
a means of transportation. See H.R. Conf.
Rep. No. 755, 108th Cong., 2d Sess. 750
(2004). Mere application of the proceeds
from the sale of a qualified vehicle to a
needy individual to any charitable purpose
does not directly further a donee organization’s charitable purpose within the meaning of this section. The donor must obtain
from the donee organization an acknowledgment that meets the requirements of
section 3.03 of this notice. In addition,
the donor must substantiate the fair market value as described in section 5 of this
notice.
3.03 Contemporaneous written
acknowledgment under § 170(f)(12)
(1) General rule
Under § 170(f)(12), a donor must obtain a contemporaneous written acknowledgment from the donee organization, and
include the acknowledgment with the tax
return on which the deduction is claimed.

June 20, 2005

All acknowledgments under § 170(f)(12)
must include the name and taxpayer identification number of the donor, the vehicle
identification number, and the date of the
contribution. Additional information is required depending on the use of the qualified vehicle by the donee organization,
as described in sections 3.03(2) through
3.03(4) of this notice.
(2) Qualified vehicle sold by donee
organization
For a contribution of a qualified vehicle that is sold by the donee organization
without any significant intervening use or
material improvement by the donee organization in a sale that is not described
in section 3.02(3) of this notice, the acknowledgment also must contain the date
the qualified vehicle was sold, a certification that the qualified vehicle was sold in
an arm’s length transaction between unrelated parties, a statement of the gross proceeds from the sale, and a statement that
the deductible amount may not exceed the
amount of the gross proceeds. The acknowledgment is considered contemporaneous if the donee organization furnishes
the acknowledgment to the donor no later
than 30 days after the date of the sale.
Example 1. On October 1, 2005, A contributes a
qualified vehicle with a fair market value of $1,300 to
O, an organization that is described in § 170(c). On
December 1, 2005, the qualified vehicle is sold without any significant intervening use or material improvement in a sale not described in section 3.02(3) of
this notice. Gross proceeds from the sale are $1,000.
On or before December 31, 2005, O provides an acknowledgment to A containing A’s name and taxpayer identification number, the vehicle identification number, a statement that the date of the contribution was October 1, 2005, a statement that the date of
the sale was December 1, 2005, a certification that the
qualified vehicle was sold in an arm’s length transaction between unrelated parties, a statement that the
gross proceeds of the sale are $1,000, and a statement
that the amount of A’s deduction may not exceed the
amount of the gross proceeds. The acknowledgment
meets the requirements of § 170(f)(12).

(3) Significant intervening use of or
material improvement to a qualified
vehicle
For a contribution of a qualified vehicle for which the donee organization intends a significant intervening use or material improvement within the meaning of
section 7.01 of this notice, the acknowledgment also must contain: 1) a certification and detailed description of a) the in-

1288

tended significant intervening use by the
donee organization and the intended duration of the use, or b) the intended material
improvement by the donee organization;
and 2) a certification that the qualified vehicle will not be sold before completion of
the use or improvement. The acknowledgment is considered contemporaneous if the
donee organization furnishes the acknowledgment to the donor within 30 days of the
date of the contribution.
Example 2. On October 1, 2005, B contributes
a qualified vehicle to O, an organization that is described in § 170(c). O intends to use the vehicle in
its charitable activities, and the intended use is a significant intervening use within the meaning of section 7.01(1) of this notice. On or before October 31,
2005, O provides an acknowledgment to B containing
B’s name and taxpayer identification number, the vehicle identification number, a statement that the date
of the contribution was October 1, 2005, a certification stating that O intends to make a significant intervening use of the qualified vehicle and stating the
duration of this use, a detailed description of the significant intervening use, and a certification that the
qualified vehicle will not be transferred in exchange
for money, other property, or services before completion of the use by O. The acknowledgment meets the
requirements of § 170(f)(12).

(4) Qualified vehicle sold at a price
significantly below fair market value
(or gratuitously transferred) to needy
individual in direct furtherance of donee
organization’s charitable purpose
For a contribution of a qualified vehicle that meets the requirements of section
3.02(3) of this notice, the acknowledgment
also must contain a certification that the
donee organization will sell the qualified
vehicle to a needy individual at a price
significantly below fair market value (or,
if applicable, that the donee organization
gratuitously will transfer the qualified vehicle to a needy individual) and that the
sale (or transfer) will be in direct furtherance of the donee organization’s charitable purpose of relieving the poor and distressed or the underprivileged who are in
need of a means of transportation. The acknowledgment is considered contemporaneous if the donee organization furnishes
the acknowledgment to the donor no later
than 30 days after the date of the contribution.
Example 3. On October 1, 2005, C contributes
a qualified vehicle to O, an organization that is described in § 170(c). O’s charitable purposes include
helping needy individuals who are unemployed develop new job skills, finding job placements for these
individuals, and providing transportation for these in-

2005–25 I.R.B.

dividuals who need a means of transportation to jobs
in areas not served by public transportation. O determines that, in direct furtherance of its charitable purpose, O will sell the qualified vehicle at a price significantly below fair market value to a trainee who needs
a means of transportation to a new workplace. On or
before October 31, 2005, O provides an acknowledgment to C containing C’s name and taxpayer identification number, the vehicle identification number, a
statement that the date of the contribution was October 1, 2005, a certification that O will sell the qualified vehicle to a needy individual at a price significantly below fair market value, and a certification that
the sale is in direct furtherance of O’s charitable purpose as described above. The acknowledgment meets
the requirements of § 170(f)(12).

SECTION 4. DEDUCTIONS OF $500
OR LESS
4.01 Contemporaneous written
acknowledgment required to substantiate
a qualified vehicle contribution of $250
but not more than $500
A contribution of a qualified vehicle
with a claimed value of at least $250 (as
determined in accordance with section 5
of this notice) must be substantiated by
a contemporaneous written acknowledgment of the contribution by the donee organization. For a qualified vehicle with a
claimed value of at least $250 but not more
than $500, the acknowledgment must contain the following information as required
by § 170(f)(8): the amount of cash and a
description (but not value) of any property
other than cash contributed; whether the
donee organization provided any goods or
services in consideration, in whole or in
part, for the cash or property contributed;
and a description and good faith estimate
of the value of any goods or services provided by the donee organization in consideration for the contribution, or, if such
goods or services consist solely of intangible religious benefits, a statement to that
effect. To meet the contemporaneous requirement of § 170(f)(8)(C), the acknowledgment must be obtained by the donor on
or before the earlier of the date on which
the donor files a return for the taxable year
in which the contribution was made, or the
due date (including extensions) of that return.
4.02 Sale of qualified vehicle yields gross
proceeds of $500 or less
If a donor contributes a qualified vehicle that is subsequently sold, in a sale not

2005–25 I.R.B.

described in section 3.02(3) of this notice,
without any significant intervening use or
material improvement by the donee organization, and the sale yields gross proceeds
of $500 or less, the donor may be allowed
a deduction equal to the lesser of the fair
market value of the qualified vehicle on
the date of the contribution or $500, subject to the terms and limitations of § 170.
Under these circumstances, the donor must
substantiate the fair market value (see section 5 of this notice), and, if the fair market
value is $250 or more, must substantiate
the contribution with an acknowledgment
that meets the requirements of § 170(f)(8).
Example 4. D, an individual who itemizes tax deductions, contributes a qualified vehicle to O, an organization that is described in § 170(c). The qualified
vehicle is sold without any significant intervening use
or material improvement by O, and gross proceeds of
$400 are received. In accordance with section 5 of
this notice, D determined that the fair market value
of the qualified vehicle at the time of the contribution was $800. Provided that D timely obtains a written acknowledgment that meets the requirements of
§ 170(f)(8) (see section 4.01 of this notice), and subject to the terms and limitations of § 170, D may be
allowed a deduction not to exceed $500.
Example 5. The facts are the same as in Example 4, except that in accordance with section 5 of
this notice D determined that the fair market value
of the qualified vehicle at the time of the contribution was $450. Provided that D timely obtains a written acknowledgment that meets the requirements of
§ 170(f)(8) (see section 4.01 of this notice), and subject to the terms and limitations of § 170, D may be
allowed a deduction not to exceed $450.

similar options or accessories, and with the
same or substantially similar warranties or
guarantees, as the vehicle in question. See,
e.g., Rev. Rul. 2002–67, 2002–2 C.B. 873.
The Service and the Treasury Department intend to issue regulations under
§ 170 clarifying that for purposes of § 170,
the dealer retail value listed in a used vehicle pricing guide for a particular vehicle is
not an acceptable measure of fair market
value of a similar vehicle. The regulations
will clarify that, for purposes of § 170,
an acceptable measure of the fair market
value of a vehicle, for contributions made
after June 3, 2005, and before the date regulations become effective, is an amount
not in excess of the price listed in a used
vehicle pricing guide for a private party
sale of a similar vehicle. The regulations
limiting the fair market value of a vehicle
to an amount not in excess of the private
party sale price will apply to contributions
of vehicles made after June 3, 2005. In
addition, the Service and the Treasury
Department will consider whether other
values, such as the dealer trade-in value,
are appropriate measures of the fair market
value of a vehicle for purposes of § 170.
Any regulations limiting the fair market
value of a vehicle to an amount less than
the private party sale value will not apply
to contributions made prior to the date that
regulations to that effect become effective.

SECTION 5. FAIR MARKET VALUE

SECTION 6. QUALIFIED APPRAISAL

A donor claiming a deduction for the
fair market value of a qualified vehicle
must be able to substantiate the fair market
value. Section 1.170A–1(c)(2) provides
that fair market value is the price at which
the property would change hands between
a willing buyer and a willing seller, neither
being under any compulsion to buy or sell
and each having reasonable knowledge of
relevant facts.
A reasonable method of determining
the fair market value of a qualified vehicle
is by reference to an established used vehicle pricing guide. Many factors must be
taken into account when using a used vehicle pricing guide to determine fair market
value. A used vehicle pricing guide establishes the fair market value of a particular
vehicle only if the guide lists a sales price
for a vehicle that is the same make, model,
and year, sold in the same area, in the same
condition, with the same or substantially

A qualified appraisal is required for a
deduction in excess of $5,000 for a qualified vehicle if the deduction is not limited to gross proceeds from the sale of the
vehicle. See § 170(f)(11)(A)(ii)(I). For
the definition of qualified appraisal, see
§ 1.170A–13.

1289

SECTION 7. ACKNOWLEDGMENTS
BY DONEE ORGANIZATIONS
7.01 Requirements of significant
intervening use; material improvement;
sale or gratuitous transfer to needy
individual in direct furtherance of donee
organization’s charitable purpose
As described in section 3.03 of this notice, the contents of the acknowledgment
required under § 170(f)(12) depend upon
whether the donee organization sells a
qualified vehicle without any significant
intervening use or material improvement,

June 20, 2005

intends to make a significant intervening use of or material improvement to a
qualified vehicle prior to sale, or, in direct furtherance of a charitable purpose of
the organization of relieving the poor and
distressed or the underprivileged who are
in need of a means of transportation, intends to sell a qualified vehicle to a needy
individual at a price significantly below
fair market value, or gratuitously transfer
a qualified vehicle to a needy individual. This section provides rules for donee
organizations to use in determining the
contents of the acknowledgments required
under § 170(f)(12).
(1) Significant intervening use
To constitute a significant intervening
use, a donee organization must actually use
the qualified vehicle to substantially further the organization’s regularly conducted
activities, and the use must be significant.
Incidental use by an organization is not a
significant intervening use. Whether a use
is a significant intervening use depends on
its nature, extent, frequency, and duration.
See H.R. Conf. Rep. No. 755, 108th
Cong., 2d Sess. 750–751 (2004). For this
purpose, use by the donee organization includes use of the qualified vehicle to provide transportation on a regular basis for a
significant period of time or significant use
directly related to instruction in vehicle repair. However, use by the donee organization does not include use of the qualified
vehicle to provide training in general business skills, such as marketing and sales.
Example 6. E contributes a qualified vehicle to O,
an organization that is described in § 170(c). As part
of its regularly conducted activities, O delivers meals
to needy individuals. O uses the qualified vehicle
only a few times to deliver meals and then sells the
qualified vehicle. Because O’s use is infrequent and
incidental, there is no significant intervening use.
Example 7. The facts are the same as in Example 6, except that O uses the qualified vehicle to deliver meals every day for one year. Because O’s use is
significant and substantially furthers a regularly conducted activity of O, there is a significant intervening
use.
Example 8. The facts are the same as in Example 6, except that O does not use the qualified vehicle
to deliver meals every day. However, O drives the
qualified vehicle a total of 10,000 miles over a 1-year
period while delivering meals. Because O’s use is
significant and substantially furthers a regularly conducted activity of O, there is a significant intervening
use.

June 20, 2005

(2) Material improvement
Material improvement includes a major
repair or improvement that improves the
condition of the qualified vehicle in a manner that significantly increases the value.
Cleaning, minor repairs, and routine maintenance are not considered material improvements. See H.R. Conf. Rep. No.
755, 108th Cong., 2d Sess. 751 (2004).
To be a material improvement of a qualified vehicle, the improvement may not be
funded by an additional payment to the
donee organization from the donor of the
qualified vehicle.
For purposes of § 170(f)(12), services
that are not considered material improvements include: 1) application of paint
or other types of finishes (such as rustproofing or wax); 2) removal of dents and
scratches; 3) cleaning or repair of upholstery; and 4) installation of theft deterrent
devices.
(3) Sale or gratuitous transfer to needy
individual in direct furtherance of donee
organization’s charitable purpose
As provided in section 3.02(3) of this
notice, the gross proceeds limitation does
not apply to a sale of a qualified vehicle at a
price significantly below fair market value
(as described in section 5 of this notice), or
a gratuitous transfer of a qualified vehicle,
to a needy individual if supplying a vehicle
to a needy individual is in direct furtherance of a charitable purpose of the donee
organization of relieving the poor and distressed or the underprivileged who are in
need of a means of transportation.
7.02 Information reporting by donee
organizations
Section 170(f)(12)(D) requires a donee
organization to provide to the Secretary the information given to the donor
in the acknowledgment required under
§ 170(f)(12). The time and manner rules
for information reporting required under
§ 170(f)(12)(D) will be addressed in separate guidance. See section 3.03 of this
notice for guidance on the content of the
acknowledgment.

1290

7.03 Penalties for false or fraudulent
acknowledgments and for knowing failure
to furnish proper acknowledgment
Section 6720 imposes penalties on
any donee organization required under
§ 170(f)(12)(A) to furnish an acknowledgment to a donor that knowingly furnishes
a false or fraudulent acknowledgment, or
knowingly fails to furnish an acknowledgment in the manner, at the time, and
showing the information required under
§ 170(f)(12) or regulations thereunder.
An acknowledgment containing a certification described in section 3.03(3) or
(4) of this notice shall be presumed to be
false or fraudulent, and therefore subject
to a penalty under § 6720, if the qualified
vehicle is sold to a buyer, other than a
needy individual as described in section
7.01(3) of this notice, without a significant
intervening use or material improvement
within six months of the date of the contribution. The penalty applicable to an
acknowledgment relating to a qualified
vehicle described in section 3.02(1) of
this notice is the greater of (1) the product of the highest rate of tax specified in
§ 1 (currently 35%) and the sales price
stated on the acknowledgment, or (2) the
gross proceeds from the sale of the qualified vehicle. The penalty applicable to
an acknowledgment relating to any other
qualified vehicle the claimed value of
which is more than $500 is the greater of
(1) the product of the highest rate of tax
specified in § 1 and the claimed value of
the qualified vehicle, or (2) $5,000.
Example 9. O, an organization that is described
in § 170(c), receives a contribution of a qualified vehicle that is a subcompact car that has been driven
more than 100,000 miles. The substance of O’s charitable activities involves regularly delivering food and
other needed goods to the rural poor at remote locations. For this purpose, O needs three large vehicles
suitable for delivering heavy loads across rugged terrain. Among many contributed qualified vehicles, O
has identified three suitable vehicles that O intends to
use for this purpose. The subcompact car is not suitable for O’s use. O provides an acknowledgment to
the donor of the subcompact car in which O knowingly makes a false certification of the intended use
of the qualified vehicle and the duration of such intended use. The donor of the qualified vehicle claims
a deduction of $2,300. O is subject to a penalty under § 6720 for knowingly furnishing a false or fraudulent acknowledgment to the donor. The amount of
the penalty is $5,000, because that amount is greater
than $805, the product of the claimed value ($2,300)
and 35%.
Example 10. O, an organization that is described
in § 170(c), receives a contribution of a qualified ve-

2005–25 I.R.B.

hicle. The qualified vehicle is sold without any significant intervening use or material improvement by
O. Gross proceeds from the sale are $300. O provides an acknowledgment to the donor in which O
knowingly includes a false or fraudulent statement
that the gross proceeds from the sale of the vehicle were $1,000. O is subject to a penalty under
§ 6720 for knowingly furnishing a false or fraudulent acknowledgment to the donor. The amount of the
penalty is $350, the product of the sales price stated
in the acknowledgment ($1,000) and 35%, because
that amount is greater than the gross proceeds from
the sale of the vehicle ($300).

7.04 Sections 170(f)(12)(D) and 6720
inapplicable if donor claims deduction of
$500 or less
For contributions within the scope of
the rules described in section 4 of this notice (regarding deductions of $500 or less),
§§ 170(f)(12)(D) and 6720 do not apply.
SECTION 8. EFFECTIVE DATE AND
INTERIM GUIDANCE FOR DONORS
AND DONEE ORGANIZATIONS
8.01 Effective date and transition rules
This notice generally is effective for
contributions made on or after January
1, 2005. However, the following transition rules are provided. A contemporaneous written acknowledgment that is
obtained on or before July 3, 2005, will
be treated as satisfying the requirements
of § 170(f)(12)(A) if the acknowledgment
contains all of the information specified
in § 170(f)(12)(B), even if the acknowledgment does not include the date the
qualified vehicle is sold (as required by
section 3.03(2) of this notice), or a detailed
description of the intended significant intervening use or material improvement by
the donee organization (as required by section 3.03(3) of this notice). In the case of
contributions described in section 3.02(3)
of this notice regarding qualified vehicles
sold at a price significantly below fair
market value (or gratuitously transferred)
to needy individuals, the requirement of
section 3.03(4) of this notice that an acknowledgment contain the information
described in that section is effective for
contributions made on or after January 1,
2005. For such contributions made on or
before September 1, 2005, the acknowledgment must be obtained by the donor on
or before October 1, 2005.

2005–25 I.R.B.

8.02 Extension of time to obtain
acknowledgments under § 170(f)(12)
for contributions made on or before
September 1, 2005
Pursuant to § 170(f)(12)(F), the Service and the Treasury Department have
determined that it is appropriate to provide donors an extension of time to obtain
the contemporaneous written acknowledgment required by § 170(f)(12)(A). Therefore, for contributions made on or before
September 1, 2005, a written acknowledgment will be considered contemporaneous for purposes of § 170(f)(12)(C) if
it is obtained within the time specified in
§ 170(f)(12)(C) or, if later, on or before
October 1, 2005.
8.03 Form of acknowledgment
A donee organization may provide an
acknowledgment to a donor containing the
information required under § 170(f)(12)
in any reasonable manner. The Service
and the Treasury Department will be providing Form 1098–C for reporting to the
Service the information required to be reported under § 170(f)(12)(D). A copy of
Form 1098–C may be used by a donee organization to provide a contemporaneous
written acknowledgment to a donor pursuant to § 170(f)(12).
8.04 Satisfaction of contemporaneous
requirement for purposes of § 6720
Section 6720 imposes penalties on any
donee organization that knowingly fails
to furnish an acknowledgment within the
time required under § 170(f)(12) or the
regulations thereunder. See section 7.03 of
this notice. A donee organization that provides a contemporaneous written acknowledgment that is treated as contemporaneous under sections 8.01 and 8.02 of this notice will be treated as having furnished the
acknowledgment within the time required
under § 170(f)(12) for purposes of § 6720.
SECTION 9. REQUEST FOR
COMMENTS
The Service and the Treasury Department invite comments regarding this notice and suggestions for future guidance
under §§ 170(f)(12) and 6720. In particular, comments are requested on which markets are appropriate for measuring the fair

1291

market value of vehicles for purposes of
§ 170, and for determining whether a sale
was at a price significantly below fair market value for purposes of sections 3.02(3)
and 7.01(3) of this notice. Commentators already have suggested that the most
appropriate market for measuring the fair
market value of vehicles is the market either for private party sales or for dealer
trade-in transactions. Comments should
address the factors that distinguish private
party sales and dealer trade-in transactions,
and which type of transaction is most similar to a charitable contribution. As discussed in section 5 of this notice, any regulations limiting the fair market value of
a qualified vehicle for purposes of § 170
will not require use of a value less than the
private party sale value for contributions
made before the date the regulations become effective, but may require use of a
value less than the private party sale value
after that date. Comments should refer
to Notice 2005–44 and be submitted by
September 1, 2005, to:
Internal Revenue Service
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
Attn: CC:PA:LPD:PR
Room 5203
Alternatively, comments may be submitted electronically via e-mail to the following address: Notice.Comments@irscounsel.treas.gov. All comments will be available for public inspection and copying.
SECTION 10. PAPERWORK
REDUCTION ACT
The collections of information in this
notice have been reviewed and approved
by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1942.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 3, 4, 7, and 8. The
collections of information in sections 3,
4, and 8 are required from donors to satisfy the substantiation requirements of

June 20, 2005

§ 170(f)(12). The collections of information are required from donors to obtain a
benefit. The likely respondents are individual donors.
The collections of information in sections 3, 4, 7, and 8 are required from donee
organizations to satisfy the donee reporting requirements of § 170(f)(12) and avoid
the penalties in § 6720. The collections of
information are mandatory. The likely respondents are tax-exempt charitable organizations.
The estimated total annual reporting
burden is 3,041 hours for donors and
21,500 hours for donee organizations.
The estimated annual burden per donor
varies from 1 minute to 5 minutes. The
estimated annual burden per donee organization varies from 30 minutes to 16 hours,
depending on individual circumstances.
The estimated average annual burdens are

June 20, 2005

1 minute for donors and 5 hours for donee
organizations. The estimated number of
donors is 182,500 and the estimated number of donee organizations is 4,300.
The estimated annual frequency of responses (used for reporting requirements
only) is annually.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and return information are confidential, as required by
§ 6103.
SECTION 11. DRAFTING
INFORMATION

Accounting). For information regarding
whether a transfer is in direct furtherance of a donee organization’s charitable
purpose, contact Sean Barnett of the Tax
Exempt and Government Entities Division at (202) 283–8913. For information
regarding penalties under § 6720, contact Donnell Rini-Swyers of the Office
of Associate Chief Counsel (Procedure
and Administration) at (202) 622–4910.
For information regarding information
reporting by a donee organization, contact
Mr. Barnett or Ms. Rini-Swyers. For
further information regarding the remainder of this notice, contact Ms. Zweibel at
(202) 622–5020 (not a toll-free call).

The principal author of this notice is
Patricia M. Zweibel of the Office of Associate Chief Counsel (Income Tax &

1292

2005–25 I.R.B.