81 FR 882 - Substantiation Requirement for Certain Contributions; Withdrawal

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 5 (January 8, 2016)

Page Range		882-883
FR Document		2016-00189

This document withdraws proposed regulations that would implement the statutory exception to the ``contemporaneous written acknowledgement'' requirement for substantiating charitable contribution deductions of $250 or more. The withdrawal affects persons that make charitable contributions and organizations that receive charitable contributions.

Federal Register, Volume 81 Issue 5 (Friday, January 8, 2016)

[Federal Register Volume 81, Number 5 (Friday, January 8, 2016)]
[Proposed Rules]
[Pages 882-883]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00189]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-138344-13]
RIN 1545-BL94


Substantiation Requirement for Certain Contributions; Withdrawal

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws proposed regulations that would 
implement the statutory exception to the ``contemporaneous written 
acknowledgement'' requirement for substantiating charitable 
contribution deductions of $250 or more. The withdrawal affects persons 
that make charitable contributions and organizations that receive 
charitable contributions.

DATES: As of January 8, 2016 the notice of proposed rulemaking 
published on September 17, 2015 (80 FR 55802), is withdrawn.

FOR FURTHER INFORMATION CONTACT: Robert Basso at (202) 317-7011 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Section 170(f)(8)(A) of the Internal Revenue Code provides the 
statutory requirement that a taxpayer who claims a charitable 
contribution deduction for any contribution of $250 or more obtain 
substantiation in the form of a contemporaneous written acknowledgment 
(CWA) from the donee organization. However, in section 170(f)(8)(D), 
Congress provided an exception to the CWA requirement. Under the 
exception, a CWA is not required if the donee organization files a 
return on such form and in accordance with such regulations as the 
Treasury Department may prescribe (donee reporting).
    Section 1.170A-13(f) of the Income Tax Regulations provides the 
rules issued by the Treasury Department and the IRS for substantiating 
charitable contributions of $250 or more. See TD 8690 (1997-1 CB 68). 
When issuing TD 8690 in 1997, the Treasury Department and the IRS 
specifically declined to issue regulations to implement donee reporting 
under section 170(f)(8)(D). The IRS has consistently maintained that 
the section 170(f)(8)(D) exception is not available unless and until 
the Treasury Department and the IRS issue final regulations prescribing 
the method for donee reporting. Nevertheless, some taxpayers under 
examination for their claimed charitable contribution deductions have 
recently argued that a failure to comply with the CWA requirements of 
section 170(f)(8)(A) may be cured if the donee organization files an 
amended Form 990, ``Return of Organization Exempt From Income Tax,'' 
that includes the donor's contribution information. These taxpayers 
argue that an amended Form 990 constitutes permissible donee reporting 
under section 170(f)(8)(D), even if the amended Form 990 is submitted 
to the IRS many years after the purported charitable contribution was 
made. In response to some donors' requests, some donee organizations 
have filed amended Forms 990 attempting to effectuate donee reporting. 
The Treasury Department and the IRS have concluded that the Form 990 is 
an unsuitable reporting method for this purpose and may not be used to 
effectuate donee reporting.
    However, in response to the interest by some taxpayers in donee 
reporting under the statutory exception, the Treasury Department and 
the IRS proposed regulations to implement a framework addressing the 
manner and timing for donee reporting under section 170(f)(8)(D). On 
September 17, 2015, a notice of proposed rulemaking (REG-138344-13) was 
published in the Federal Register (80 FR 55802). The proposed framework 
for donee reporting was based on a specific-use information return that 
would include, among other things, the donor's name, address, and 
taxpayer identification number. Similar to other specific-use 
information returns filed with the IRS, the donor's taxpayer 
identification number was required in order to properly associate the 
donation information with the correct taxpayer. Unlike a CWA, which is 
not sent to the IRS, the donee reporting information return would be 
sent to the IRS, which must have a means to store, maintain, and 
readily retrieve the return information for a specific taxpayer if and 
when substantiation is required in the course of an examination.
    The proposed framework for donee reporting was intended to minimize 
the reporting burden on donee organizations by making it voluntary, and 
to protect donor privacy by not using the Form 990 series. In the 
preamble to the proposed regulations, the Treasury Department and the 
IRS expressed concern about the potential risk for identity theft with 
a donee reporting system based on a specific-use information return 
because donee organizations would be collecting donors' taxpayer 
identification numbers and maintaining those numbers for some period of 
time. The Treasury Department and the IRS requested comments, including 
specifically on whether additional guidance was necessary regarding the 
procedures a donee organization should use to mitigate the risk of 
identity theft of donor information.
    The Treasury Department and the IRS received a substantial number 
of public comments in response to the notice of proposed rulemaking. 
Many of these public comments questioned the need for donee reporting, 
and many comments expressed significant concerns about donee 
organizations collecting and maintaining taxpayer identification 
numbers for purposes of the specific-use information return. In 
response to those comments, the Treasury Department and the IRS have 
decided against implementing the statutory exception to the CWA 
requirement, and therefore that exception remains unavailable unless 
and until final regulations are issued prescribing the method for donee 
reporting. Accordingly, the notice of proposed rulemaking is being 
withdrawn.

[[Page 883]]

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Withdrawal of Notice of Proposed Rulemaking

    Under the authority of 26 U.S.C. 7805, the notice of proposed 
rulemaking (REG-138344-13) that was published in the Federal Register 
on September 17, 2015 (80 FR 55802) is withdrawn.

Karen M. Schiller,
Acting Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-00189 Filed 1-7-16; 8:45 am]
BILLING CODE 4830-01-P

Federal Register / Vol. 81, No. 5 / Friday, January 8, 2016 / Proposed Rules 883

List of Subjects in 26 CFR Part 1 all correspondence related to this case. to 5 U.S.C. 553(a)(2) because it applies
Income taxes, Reporting and All comments will be posted without to agency management or personnel.
recordkeeping requirements. change to http://www.regulations.gov,
D. Paperwork Reduction Act
including any personal and/or business
Withdrawal of Notice of Proposed confidential information provided. To The Paperwork Reduction Act does
Rulemaking confirm receipt of your comment(s), not apply because the proposed changes
Under the authority of 26 U.S.C. 7805, please check www.regulations.gov to the FTR do not impose recordkeeping
the notice of proposed rulemaking approximately two to three days after or information collection requirements,
(REG–138344–13) that was published in submission to verify posting (except or the collection of information from
the Federal Register on September 17, allow 30 days for posting of comments offerors, contractors, or members of the
2015 (80 FR 55802) is withdrawn. submitted by mail). public that require the approval of the
FOR FURTHER INFORMATION CONTACT: For Office of Management and Budget
Karen M. Schiller, (OMB) under 44 U.S.C. 3501, et seq.
clarification of content, contact Mr. Cy
Acting Deputy Commissioner for Services and Greenidge, Program Analyst, Office of
Enforcement. E. Small Business Regulatory
Government-wide Policy, at 202–219– Enforcement Fairness Act
[FR Doc. 2016–00189 Filed 1–7–16; 8:45 am]
2349. Contact the Regulatory Secretariat
BILLING CODE 4830–01–P (MVCB), 1800 F Street NW., This proposed rule is also exempt
Washington, DC 20405, 202–501–4755, from Congressional review prescribed
for information pertaining to status or under 5 U.S.C. 801. This proposed rule
GENERAL SERVICES publication schedules. Please cite FTR is not a major rule under 5 U.S.C. 804.
ADMINISTRATION case 2015–304. List of Subjects in 41 CFR Parts 300–3,
SUPPLEMENTARY INFORMATION: 301–11, 301–12 and 301–70
41 CFR Parts 300–3, 301–11, 301–12,
and 301–70 A. Background Administrative practices and
The FTR currently lists incidental procedures, Government employees,
[FTR Case 2015–304; Docket 2015–0017,
Sequence 1] expenses as fees and tips given to Travel and transportation expenses.
porters, baggage carriers, hotel staff, and Dated: December 7, 2015.
RIN 3090–AJ56
staff on ships. Including ATM fees in Giancarlo Brizzi,
Federal Travel Regulation; Updating incidental expenses, rather than Acting Associate Administrator (M), Office
the Incidental Expenses Definition and reimbursing as a miscellaneous expense, of Government-wide Policy.
the Laundry, Cleaning, and Pressing of will increase the Government’s ability to For the reasons set forth in the
Clothing Policy project travel costs, improve cost preamble, pursuant to 5 U.S.C. 5701–
control, and simplify rules of official 5711, GSA proposes to amend 41 CFR
AGENCY: Office of Government-wide travel. Additionally, this proposed rule parts 300–3, 301–11, 301–12, and 301–
Policy (OGP), General Services removes the ambiguity on whether 70 as set forth below:
Administration (GSA). reimbursement of expenses for laundry,
ACTION: Proposed rule. cleaning, and pressing of clothing for PART 300–3—GLOSSARY OF TERMS
employees who go on official travel are
SUMMARY: GSA is proposing to amend subject to agency discretion. ■ 1. The authority citation for 41 CFR
the Federal Travel Regulation (FTR) by part 300–3 continues to read as follows:
updating the definition for incidental B. Executive Orders 12866 and 13563
Authority: 5 U.S.C. 5707; 40 U.S.C. 121(c);
expenses to include ATM fees, and by Executive Orders (E.O.s) 12866 and 49 U.S.C. 40118; 5 U.S.C. 5738; 5 U.S.C.
clarifying the policy for laundry, 13563 direct agencies to assess all costs 5741–5742; 20 U.S.C. 905(a); 31 U.S.C. 1353;
cleaning, and pressing of clothing. and benefits of available regulatory E.O 11609, as amended, 3 CFR, 1971–1975
DATES: Interested parties should submit alternatives, and if regulation is Comp. p. 586, Office of Management and
comments to the Regulatory Secretariat necessary, to select regulatory Budget Circular No. A–126, revised May 22,
at one of the addresses shown below on approaches that maximize net benefits 1992.
or before March 8, 2016 to be (including potential economic, ■ 2. Amend § 300–3.1 in the definition
considered in the formation of the final environmental, public health and safety ‘‘Per diem allowance’’ by revising
rule. effects, distributive impacts, and paragraph (c) to read as follows:
ADDRESSES: Submit comments equity). E.O. 13563 emphasizes the
identified by FTR Case 2015–304 by any importance of quantifying both costs § 300–3.1 What do the following terms
and benefits, of reducing costs, of mean?
of the following methods:
• Federal eRulemaking Portal: http:// harmonizing rules, and of promoting * * * * *
www.regulations.gov. Submit comments flexibility. This proposed rule is not a Per diem allowance * * *
via the Federal eRulemaking portal by significant regulatory action, and (c) Incidental expenses—Transaction
searching for ‘‘FTR Case 2015–304.’’ therefore, was not subject to review fees for ATM services, and fees and tips
Select the link ‘‘Comment Now’’ that under Section 6(b) of E.O. 12866, given to porters, baggage carriers, hotel
corresponds with ‘‘FTR Case 2015–304’’ Regulatory Planning and Review, dated staff, and staff on ships.
and follow the instructions provided at September 30, 1993. * * * * *
the screen. Please include your name,
srobinson on DSK5SPTVN1PROD with PROPOSALS

C. Regulatory Flexibility Act PART 301–11—PER DIEM EXPENSES
company name (if any), and ‘‘FTR Case
2015–304’’ on your attached document. This proposed rule would not have a ■ 3. The authority citation for 41 CFR
• Mail: General Services significant economic impact on a part 301–11 continues to read as
Administration, Regulatory Secretariat substantial number of small entities follows:
(MVCB), Attn. Ms. Flowers, 1800 F within the meaning of the Regulatory
Street NW., Washington, DC 20405. Flexibility Act, 5 U.S.C. 601, et seq. This Authority: 5 U.S.C. 5707.
Instructions: Please submit comments proposed rule is also exempt from the ■ 4. Amend § 301–11.31 by removing
only and cite ‘‘FTR Case 2015–304’’, in Administrative Procedure Act pursuant the first two sentences and adding one

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Document Created: 2016-01-16 01:15:14
Document Modified: 2016-01-16 01:15:14

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Withdrawal of notice of proposed rulemaking.
Dates		As of January 8, 2016 the notice of proposed rulemaking published on September 17, 2015 (80 FR 55802), is withdrawn.
Contact		Robert Basso at (202) 317-7011 (not a toll-free number).
FR Citation		81 FR 882
RIN Number		1545-BL94
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

81 FR 882 - Substantiation Requirement for Certain Contributions; Withdrawal

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 5 (January 8, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service