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Civil Aviation, it is FAA policy to
comply with ICAO Standards and
Recommended Practices to the
maximum extent practicable. The FAA
has determined that this proposed rule
does not conflict with any international
agreement of the United States.
Paperwork Reduction Act
The OMB control number assigned to
the collection of information for this
proposed rule is 2120–0021.
Plain Language
In response to the June 1, 1998
Presidential Memorandum regarding the
use of plain language, the FAA reexamined the writing style currently
used in the development of regulations.
The memorandum requires federal
agencies to communicate clearly with
the public. We are interested in your
comments on whether the style of this
document is clear, and in any other
suggestions you might have to improve
the clarity of FAA communications that
affect you.
You can get more information about
the Presidential memorandum and the
plain language initiative at http://
www.plainlanguage.gov.
Regulations That Significantly Affect
Energy Supply, Distribution, or Use
The FAA has analyzed this NPRM
under Executive Order 13211, Actions
Concerning Regulations that
Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). We
have determined that it is not a
‘‘significant energy action’’ under the
executive order because it is not a
‘‘significant regulatory action’’ under
Executive Order 12866, and it is not
likely to have a significant adverse effect
on the supply, distribution, or use of
energy.

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IV. Additional Information
Comments Invited
The FAA invites interested persons to
participate in this rulemaking by
submitting written comments, data, or
views. We also invite comments relating
to the economic, environmental, energy,
or federalism impacts that might result
from adopting the proposals in this
document. The most helpful comments
reference a specific portion of the
proposal, explain the reason for any
recommended change, and include
supporting data. To ensure the docket
does not contain duplicate comments,
please send only one copy of written
comments, or if you are filing comments
electronically, please submit your
comments one time.
We will file in the docket all
comments we receive, as well as a

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report summarizing each substantive
public contact with FAA personnel
concerning this proposed rulemaking.
Before acting on this proposal, we will
consider all comments we receive on or
before the closing date for comments.
We will consider comments filed after
the comment period has closed if it is
possible to do so without incurring
expense or delay. We may change this
proposal in light of the comments we
receive.
Proprietary or Confidential Business
Information
Do not file in the docket information
that you consider to be proprietary or
confidential business information. Send
or deliver this information directly to
the person identified in the FOR FURTHER
INFORMATION CONTACT section of this
document. You must mark the
information that you consider
proprietary or confidential. If you send
the information on a disk or CD–ROM,
mark the outside of the disk or CD–ROM
and also identify electronically within
the disk or CD–ROM the specific
information that is proprietary or
confidential.
Under § 11.35(b), when we are aware
of proprietary information filed with a
comment, we do not place it in the
docket. We hold it in a separate file to
which the public does not have access,
and place a note in the docket that we
have received it. If we receive a request
to examine or copy this information, we
treat it as any other request under the
Freedom of Information Act (5 U.S.C.
552). We process such a request under
the DOT procedures found in 49 CFR
part 7.
Availability of Rulemaking Documents
You can get an electronic copy using
the Internet by—
(1) Searching the Federal
eRulemaking Portal (http://
www.regulations.gov);
(2) Visiting the FAA’s Regulations and
Policies web page at: http://
www.faa.gov/regulations_policies; or
(3) Accessing the Government
Printing Office’s web page at: http://
www.gpoaccess.gov/fr/index.html.
You can also get a copy by sending a
request to the Federal Aviation
Administration, Office of Rulemaking,
ARM–1, 800 Independence Avenue,
SW., Washington, DC 20591, or by
calling (202) 267–9680. Make sure to
identify the docket number, notice
number, or amendment number of this
rulemaking.
You may access all documents the
FAA considered in developing this
proposed rule, including economic
analyses and technical reports, from the

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internet through the Federal
eRulemaking Portal referenced in
paragraph (1).
List of Subjects in 14 CFR Part 61
Aircraft, Aircraft pilots, Airmen,
Airplanes, Air safety, Air transportation,
Aviation safety, Balloons, Helicopters,
Rotorcraft, Students.
The Proposed Amendment
In consideration of the foregoing, the
Federal Aviation Administration
proposes to amend part 61 of Title 14
of the Code of Federal Regulations (14
CFR part 61) as follows:
PART 61—CERTIFICATION: PILOTS,
FLIGHT INSTRUCTORS, AND GROUND
INSTRUCTORS
1. The authority citation for part 61
continues to read as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701–
44703, 44707, 44709–44711, 45102–45103,
45301–45302.

2. Revise section 3 of SFAR No. 73 to
read as follows:
Special Federal Aviation Regulation No.
73—Robinson R–22/R–44 Special Training
and Experience Requirements

*

*
*
*
*
3. Expiration date. This SFAR number
73 shall remain in effect until further
notice.
Issued in Washington, DC on July 30, 2008.
James J. Ballough,
Director, Flight Standards Service.
[FR Doc. E8–18239 Filed 8–6–08; 8:45 am]
BILLING CODE 4910–13–P

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–140029–07]
RIN 1545–BH62

Substantiation and Reporting
Requirements for Cash and Noncash
Charitable Contribution Deductions
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:

SUMMARY: These proposed regulations
provide guidance concerning
substantiation and reporting
requirements for cash and noncash
charitable contributions under section
170 of the Internal Revenue Code
(Code). The regulations reflect the
enactment of provisions of the
American Jobs Creation Act of 2004 and

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the Pension Protection Act of 2006. The
regulations provide guidance to
individuals, partnerships, and
corporations that make charitable
contributions, and will affect any donor
claiming a deduction for a charitable
contribution after the date these
regulations are published as final
regulations in the Federal Register.
DATES: Written or electronic comments
and requests for a public hearing must
be received by November 5, 2008.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–140029–07), room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to CC:PA:LPD:PR (REG–140029–
07), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC 20224, or sent
electronically via the Federal
eRulemaking Portal at
www.regulations.gov (IRS REG–140029–
07).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Susan J. Kassell at (202) 622–5020;
concerning submissions of comments
and requests for a hearing,
Oluwafunmilayo Taylor at (202) 622–
7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information
contained in this notice of proposed
rulemaking have been submitted to the
Office of Management and Budget for
review in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the
collections of information should be
sent to the Office of Management and
Budget, Attn: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collections of
information should be received by
October 6, 2008. Comments are
specifically requested concerning:
Whether the proposed collections of
information are necessary for the proper
performance of the functions of the IRS,
including whether the information will
have practical utility;
The accuracy of the estimated burden
associated with the proposed collections
of information;
How the quality, utility, and clarity of
the information to be collected may be
enhanced;

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How the burden of complying with
the proposed collections of information
may be minimized, including through
the application of automated collection
techniques or other forms of information
technology; and
Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The collections of information in
these proposed regulations are in
§§ 1.170A–15(a) and (d)(2); 1.170A–
16(a), (b), (c), (d), (e), and (f); 1.170A–
17(a)(3) and (a)(7); and 1.170A–18(a)(2)
and (b). These collections of information
will help the IRS determine if a taxpayer
is entitled to a claimed deduction for a
charitable contribution. The collections
of information are required to obtain a
benefit. The likely respondents are
individuals, partnerships, and
corporations that claim a deduction for
a charitable contribution.
The collections of information may
vary depending on the item contributed,
the amount of the deduction claimed for
the contribution, and whether the
taxpayer claiming the deduction is an
individual, partnership, S corporation,
C corporation that is a personal service
corporation or closely held corporation,
or other C corporation.
The following estimates are based on
the information that is available to the
IRS. A respondent may require more or
less time, depending on the
circumstances.
The estimated total annual reporting
burden is 226,419 hours.
The estimated annual burden per
respondent varies from 5 minutes to 4
hours, with an estimated average annual
burden of slightly more than 1 hour.
The estimated number of respondents is
201,920.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by the Office of
Management and Budget.
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 section
6103.
Background
This document contains proposed
amendments to the Income Tax
Regulations (26 CFR part 1) for
substantiating and reporting deductions
for charitable contributions under
section 170 of the Internal Revenue
Code. Section 170(f)(11), as added by

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section 883 of the American Jobs
Creation Act of 2004, Public Law 108–
357 (118 Stat. 1418) (Jobs Act), contains
reporting and substantiation
requirements relating to deductions for
noncash charitable contributions. Under
section 170(f)(11)(C), for contributions
of property for which a deduction of
more than $5,000 is claimed, taxpayers
are required to obtain a qualified
appraisal of the property. Under section
170(f)(11)(D), for contributions of
property for which a deduction of more
than $500,000 is claimed, taxpayers
must attach a qualified appraisal of the
property to the tax return on which the
deduction is claimed.
For appraisals prepared with respect
to returns filed on or before August 17,
2006, § 1.170A–13(c) of the current
regulations provides definitions of the
terms ‘‘qualified appraisal’’ and
‘‘qualified appraiser’’. For appraisals
prepared with respect to returns filed
after August 17, 2006, section
170(f)(11)(E), as added by the Jobs Act
and amended by section 1219 of the
Pension Protection Act of 2006, Public
Law 109–280 (120 Stat. 780) (PPA),
provides statutory definitions of the
terms qualified appraisal and qualified
appraiser.
Section 170(f)(11)(E)(i) provides that
the term qualified appraisal means an
appraisal that is (1) treated as a qualified
appraisal under regulations or other
guidance prescribed by the Secretary,
and (2) conducted by a qualified
appraiser in accordance with generally
accepted appraisal standards and any
regulations or other guidance prescribed
by the Secretary.
Section 170(f)(11)(E)(ii) provides that
the term qualified appraiser means an
individual who (1) has earned an
appraisal designation from a recognized
professional appraiser organization or
has otherwise met minimum education
and experience requirements set forth in
regulations prescribed by the Secretary,
(2) regularly performs appraisals for
which the individual receives
compensation, and (3) meets such other
requirements as may be prescribed by
the Secretary in regulations or other
guidance. Section 170(f)(11)(E)(iii)
further provides that an individual will
not be treated as a qualified appraiser
unless that individual (1) demonstrates
verifiable education and experience in
valuing the type of property subject to
the appraisal, and (2) has not been
prohibited from practicing before the
IRS by the Secretary under section
330(c) of Title 31 of the United States
Code at any time during the 3-year
period ending on the date of the
appraisal.

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On October 19, 2006, the IRS and the
Treasury Department released Notice
2006–96, 2006–46 IRB 902 (see
§ 601.601(d)(2)(ii)(b) of this chapter),
which provides transitional guidance
relating to section 170(f)(11)(E) as
amended by the PPA. Specifically,
Notice 2006–96 provides transitional
safe harbor definitions for the terms
‘‘qualified appraisal’’ (section 3.02(1)),
‘‘generally accepted appraisal
standards’’ (section 3.02(2)), ‘‘appraisal
designation’’ (section 3.03(1)),
‘‘education and experience in valuing
the type of property’’ (section 3.03(2)),
and ‘‘minimum education and
experience’’ (section 3.03(3)). These
definitions apply to contributions of
property for which a deduction of more
than $5,000 is claimed on returns filed
after August 17, 2006. Notice 2006–96
solicited comments regarding the
definitions of these terms. All comments
received were considered in drafting
these regulations.
Section 1216 of the PPA added
section 170(f)(16), which provides that
no deduction is allowed for a
contribution of clothing or a household
item unless the clothing or household
item is in good used condition or better.
Section 1217 of the PPA added section
170(f)(17), which imposes a
recordkeeping requirement for all cash
contributions, regardless of amount.
Section 1219 of the PPA added section
6695A, which imposes penalties on
appraisers in certain circumstances.
Regulations implementing the penalty
provisions of section 6695A will be
published separately.
Section 170(f)(11)(H) authorizes the
Secretary to prescribe regulations as
may be necessary or appropriate to carry
out the purposes of section 170(f)(11),
including regulations that may provide
that some or all of the requirements of
section 170(f)(11) do not apply in
appropriate cases. Other statutory
authority to issue regulations is in
sections 170(f)(11)(B), (C), (E)(i)(I) and
(II), and (E)(ii)(I) and (III).

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Explanation of Provisions
I. In General
The proposed regulations generally
implement the Jobs Act and PPA
changes to the substantiation and
reporting rules for charitable
contributions. For example, the
proposed regulations implement the
recordkeeping requirements imposed by
the PPA for all cash contributions and
the new definitions of a qualified
appraisal and qualified appraiser
applicable to all noncash contributions.
The proposed regulations also
incorporate the substantiation

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requirements for noncash contributions
imposed by the Jobs Act on (1) a C
corporation (other than a closely held
corporation or a personal service
corporation) claiming a deduction of
more than $5,000, and (2) any taxpayer
claiming a deduction in excess of
$500,000.
The proposed regulations also
generally incorporate many of the
requirements of § 1.170A–13, except to
the extent § 1.170A–13 is inconsistent
with the Jobs Act and PPA
requirements. For example, many of the
requirements of § 1.170A–13(c)(3) for a
qualified appraisal are incorporated in
proposed § 1.170A–17(a); many of the
‘‘appraisal summary’’ requirements of
§ 1.170A–13(c)(4) are incorporated in
the required entries for a completed
Form 8283, ‘‘Noncash Charitable
Contributions,’’ in proposed § 1.170A–
16; and many of the requirements of
§ 1.170A–13(c)(5) for a qualified
appraiser are incorporated in proposed
§ 1.170A–17(b).
The IRS and the Treasury Department
may propose additional changes to the
substantiation regulations in the future
and hereby request comments
concerning additional issues that should
be addressed.
II. Cash, Check or Other Monetary Gifts
Proposed § 1.170A–15 implements the
requirements of section 170(f)(17),
which was added by the PPA and
provides that no deduction is allowed
for any contribution of a cash, check, or
other monetary gift unless the donor
maintains as a record of the contribution
a bank record or written communication
from the donee. Compare The Check
Clearing for the 21st Century Act, Public
Law 108–100, 117 Stat. 1178–1180 (12
U.S.C. 5002(16) and 5003(b)), which
provides guidance under the banking
laws regarding substitute checks. The
bank record or written communication
must show the name of the donee, the
date of the contribution, and the amount
of the contribution.
After section 170(f)(17) was enacted,
the IRS and the Treasury Department
received questions and comments about
the new requirements. One commenter
suggested a ‘‘de minimis exception,’’
under which donors of small amounts
would not be required to maintain bank
records or written communications from
the donee. This suggestion was not
adopted in the proposed regulations
because the exception would be
contrary to the statute and the express
language in the legislative history that
the provision applies ‘‘regardless of the
amount.’’ However, there is precedent
for exempting from the substantiation
requirements certain types of payments

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for which a charitable beneficiary
cannot provide a receipt, either because
the charitable beneficiary has not yet
been identified or because the charitable
beneficiary has no firsthand knowledge
of the amount of the payment. For
example, a taxpayer making a
contribution in the form of a transfer to
a charitable remainder trust is not
required to obtain the contemporaneous
written acknowledgment generally
required under section 170(f)(8). A
similar exception is contained in the
proposed regulations for monetary
contributions to a charitable remainder
trust of less than $250. The proposed
regulations also provide an exception
from the substantiation requirements for
unreimbursed expenses of less than
$250 incurred incident to the rendition
of services to a charitable organization.
Taxpayers claiming deductions for
monetary contributions to a charitable
remainder trust or for out of pocket
expenses incurred incident to the
rendition of services are advised to
maintain records of the gifts or
expenses.
Some commenters asked how to
comply with section 170(f)(17) if a bank
statement does not include the name of
the donee. In this situation, a monthly
bank statement and a photocopy or
image obtained from the bank of the
front of the check indicating the name
of the donee would satisfy the
provision.
III. Revised Noncash Substantiation
Requirements
As under current rules, the proposed
regulations provide that donors who
claim deductions for noncash
contributions of less than $250 are
required to obtain a receipt from the
donee or keep reliable records. The
proposed regulations provide that
donors who make contributions of $250
or more but not more than $500 are
required to obtain only a
contemporaneous written
acknowledgment, as provided under
section 170(f)(8) and § 1.170A–13(f), and
are not required to obtain any other
written records. No revisions to
§ 1.170A–13(f) are proposed in these
proposed regulations. For claimed
contributions of more than $500 but not
more than $5,000, the donor must
obtain a contemporaneous written
acknowledgment and must file a
completed Form 8283 (Section A) with
the return on which the deduction is
claimed. For claimed contributions of
more than $5,000, in addition to a
contemporaneous written
acknowledgment, a qualified appraisal
generally is required, and either Section
A or Section B of Form 8283 (depending

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on the type of property contributed)
must be completed and filed with the
return on which the deduction is
claimed. For claimed contributions of
more than $500,000, the donor must
attach a copy of the qualified appraisal
to the return. The proposed regulations
also provide that the requirements for
substantiation that must be submitted
with a return also apply to the return for
any carryover year under section 170(d).
Section 1.170A–16(c) and § 1.170A–
16(d) of the proposed regulations
generally apply to deductions claimed
for contributions of motor vehicles.
Section 1.170A–16(c)(4) and § 1.170A–
16(d)(2)(iii) explain the substantiation
requirements for contributions of motor
vehicles described in section
170(f)(12)(A)(ii) (vehicles that the donee
organization sells without any
significant intervening use or material
improvement). These substantiation
requirements are in addition to the
requirements imposed in section
170(f)(12), as added by section 884 of
the Jobs Act.
Section 170(f)(11)(A)(ii)(II), as added
by the PPA, provides that the
requirements of sections 170(f)(11)(B),
(C), and (D) do not apply if the donor
shows that the failure to meet these
requirements is due to reasonable cause
and not to willful neglect. Section
170(f)(11)(H) provides that the Secretary
may provide that some or all of the
requirements of section 170(f)(11) do
not apply in appropriate cases. The
proposed regulations provide that, to
satisfy the ‘‘reasonable cause’’ exception
under section 170(f)(11)(A)(ii)(II), the
donor must submit with the return a
detailed explanation of why the failure
to comply was due to reasonable cause
and not to willful neglect, and must
have timely obtained a
contemporaneous written
acknowledgment and a qualified
appraisal, if applicable. The proposed
regulations supersede § 1.170A–
13(c)(4)(H), which provides that a
taxpayer who fails to file an appraisal
summary (Form 8283) with the return is
permitted to provide it within 90 days
of a request from the IRS, and the
deduction will be allowed if the donor’s
original failure to file the appraisal
summary is a ‘‘good faith omission.’’
Consistent with the Congressional
purpose for enacting section 170(f)(11)
of reducing valuation abuses, the IRS
and the Treasury Department anticipate
that the ‘‘reasonable cause’’ exception
will be strictly construed to apply only
when the donor meets the requirements
for the exception as specified in the
regulations.

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IV. New Requirements for Qualified
Appraisals and Qualified Appraisers
New definitions of qualified appraisal
and qualified appraiser, taking into
account the PPA definitions of these
terms in section 170(f)(11)(E), are
provided in proposed § 1.170A–17.
Some new terms to implement these
new definitions are also included.
A. Qualified Appraisal
In proposed § 1.170A–17(a), the
proposed regulations provide that a
qualified appraisal means an appraisal
document that is prepared by a qualified
appraiser in accordance with generally
accepted appraisal standards. Generally
accepted appraisal standards are
defined in the proposed regulations as
the substance and principles of the
Uniform Standards of Professional
Appraisal Practice (USPAP), as
developed by the Appraisal Standards
Board of the Appraisal Foundation. See
Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989, Public Law 101–73, 103 Stat.
183 (12 U.S.C. 3331–3351). The
proposed regulations are similar to
section 3.02(2) of Notice 2006–96,
except that the proposed regulations
require compliance with the substance
and principles of USPAP.
Commenters suggested requiring that
appraisal documents be ‘‘in accordance
with published appraisal standards of
national professional appraisal
credentialing organizations,’’ including
references to certain other specific
standards such as the Uniform
Appraisal Standards for Federal Land
Acquisitions, and requiring appraisers
to include specific items in an appraisal,
such as all sales of the contributed
property within 18 months of the
appraisal date. The IRS and the
Treasury Department believe the
‘‘substance and principles of USPAP’’ is
broad enough to include these
suggestions. One commenter suggested
that generally accepted appraisal
standards are satisfied by an appraisal
issued by a corporation or company that
is regularly engaged in the business of
producing appraisals, relies on the
services of specialist departments, is
affiliated with an auction house, dealer
or association of dealers that conducts at
least 100 auctions or sales per year, and
regularly conducts appraisals for estate,
income and/or charitable donation
purposes. This suggestion was not
incorporated in the proposed
regulations because it does not contain
any ‘‘appraisal standards.’’
Application of the ‘‘substance and
principles of USPAP’’ rule provided in
the proposed regulations may be

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illustrated by the following situation.
The IRS is aware that some appraisers
of historic conservation easements have
stated that local ordinances restricting
modifications of a fac
¸ade should be
disregarded because local governments
do not enforce these ordinances. Under
applicable substance and principles of
USPAP, an appraiser must identify and
analyze any known restrictions,
ordinances, or similar items, and the
likelihood of any modification to those
restrictions, in formulating a value
opinion. For example, see USPAP
Standards Rules 1–2(e)(iv), 1–3(a), and
2–2(vi). An appraisal that does not take
into account a local ordinance is not
consistent with the substance and
principles of USPAP. See also § 1.170A–
14(h)(3)(ii).
In addition, some commenters
requested a specific reference to highest
and best use in the proposed
regulations. This suggestion was not
incorporated in the proposed
regulations because USPAP Standards
Rule 1–3(b) requires an appraiser to
‘‘develop an opinion of the highest and
best use of the real estate’’ when it is
‘‘necessary for credible assignment
results in developing a market value
opinion.’’ An appraisal that does not
include a development of highest and
best use when required by USPAP is not
consistent with the substance and
principles of USPAP.
The proposed regulations also clarify
the current rules. For example, the
current regulations require an appraisal
to be made no earlier than 60 days
before the contribution date. Under the
proposed regulations, the valuation
effective date, which is the date to
which the value opinion applies,
generally must be the date of the
contribution. In cases where the
appraisal is prepared before the date of
the contribution, the valuation effective
date must be no earlier than 60 days
before the date of the contribution and
no later than the date of the
contribution. The date the appraiser
signs the appraisal report (appraisal
report date) must be no earlier than 60
days before the date of the contribution
and no later than the due date
(including extensions) of the return on
which the deduction is claimed or
reported. As under current regulations,
if the deduction is claimed for the first
time on an amended return, the
appraisal report date must be no later
than the date the amended return is
filed.
Several commenters requested
clarification of when a contribution is
‘‘made’’ for purposes of determining the
proper year of the deduction and the
timeliness of the appraisal. Under

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§ 1.170A–1(b) of the current regulations,
generally a contribution is made at the
time delivery is effected. The IRS and
the Treasury Department invite
comments about when the contribution
should be treated as ‘‘made’’ for section
170 purposes if a donor contributes a
conservation easement to a qualified
organization in a jurisdiction where a
completed transfer requires execution,
delivery, and recording of the transfer
documents in the local governmental
office, and the parties deliver the fully
executed easement documents to the
appropriate governmental office for
recording in one year, but the
documents are not recorded until the
following year.
One commenter asked the IRS to state
that an appraisal prepared by an
insurance or real estate broker is not a
qualified appraisal. This
recommendation was not adopted in the
proposed regulations because an
insurance or real estate broker’s
appraisal, like any other appraisal, is a
qualified appraisal if it meets all of the
requirements for a qualified appraisal by
a qualified appraiser.
B. Qualified Appraiser
Section 1.170A–17(b) of the proposed
regulations incorporates many of the
requirements from the current
regulations, but certain other provisions
were modified. For example, the
appraiser declarations required in the
appraisal and on Form 8283 have been
modified. In addition, the proposed
regulations contain several new terms
implementing the PPA requirements of
a qualified appraiser under section
170(f)(11)(E)(ii) and (iii). In general,
under the proposed regulations, a
‘‘qualified appraiser’’ must be an
individual with verifiable education and
experience in valuing the relevant type
of property for which the appraisal is
performed.
The PPA refers to two types of
education and experience: Minimum
education and experience in section
170(f)(11)(E)(ii)(I) to establish
qualification as an appraiser generally,
and verifiable education and experience
in valuing the type of property subject
to the appraisal in section
170(f)(11)(E)(iii)(I) to establish
qualification as an appraiser for a
particular appraisal. The IRS and the
Treasury Department believe that it is
sufficient for an appraiser to satisfy the
more stringent requirement of verifiable
education and experience in valuing the
type of property subject to the appraisal.
Satisfaction of that requirement will
also satisfy the minimum education and
experience requirement of section
170(f)(11)(E)(ii)(I). The proposed

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regulations provide that an individual
has verifiable education and experience
if the individual has successfully
completed professional or college-level
coursework in valuing the relevant type
of property and has two or more years
experience in valuing that type of
property.
Furthermore, because significant
education and experience are required
to obtain a designation from a
recognized professional appraiser
organization, under the proposed
regulations appraisers with these
designations are deemed to have
demonstrated sufficient verifiable
education and experience. One
commenter asked about the
qualifications of organizations that
award designations and suggested that a
recognized professional appraisal
organization should be one that, among
other things, offers comprehensive
educational programs in USPAP and
principles of valuation, and requires
qualification to be demonstrated
through written exams and peer
reviews. The proposed regulations
incorporate some of these principles in
the definition of education and
experience in valuing the relevant type
of property.
A number of comments focused on
education and experience. Several
commenters suggested that an
appraiser’s evidence of education and
experience should be required to be
verifiable as provided in section
170(f)(11)(E)(iii)(I). The proposed
regulations incorporate this suggestion
by requiring a statement in the appraisal
of the appraiser’s specified education
and experience in valuing the relevant
type of property. The proposed
regulations also require the appraiser to
complete coursework in valuing the
category of property that is customary in
the appraisal field for an appraiser to
value.
One commenter indicated that some
of its appraiser employees may have
significant experience but lack formal
education, and suggested that
‘‘education and experience’’ be
interpreted as ‘‘education or
experience.’’ The commenter also asked
that the ‘‘education and experience’’
requirement be applied to a group of
appraisers rather than individually. The
proposed regulations do not adopt these
suggestions because they are contrary to
the section 170(f)(11)(E) requirement
that the person who signs the appraisal
report be an individual with the
requisite education and experience in
valuing the relevant type of property.
However, the proposed regulations
define education broadly to include
coursework obtained in an employment

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context, provided it is similar to an
educational program of an educational
institution or a generally recognized
professional appraisal organization.
Section 3.03(3)(a)(ii) of Notice 2006–
96 provides that, for real estate
appraisers, education and experience
are sufficient if the appraiser holds a
license or certificate to value the
relevant type of property in the state in
which the property is located. This
provision was not incorporated in the
proposed regulations, which set forth
more specific requirements applicable
to all appraisers.
Several commenters asked for a
definition of ‘‘types of property’’ for
purposes of identifying the required
education and experience. More
education and experience may be
necessary and available for some types
of property than for others. Therefore,
the proposed regulations provide that
the relevant type of property is
determined by what is customary in the
appraisal profession. The IRS and the
Treasury Department request
suggestions for categorizing types of
property that would be helpful in
determining the qualification of
appraisers, for purposes of both the
education and experience requirements.
The IRS and the Treasury Department
believe that the term ‘‘regularly
performs appraisals for which the
individual receives compensation’’
under section 170(f)(11)(E)(ii)(II) is
generally encompassed by the
experience requirement of section
170(f)(11)(E)(iii)(I) and does not need to
be separately met. One corporate
commenter was concerned that its
individual employees could never be
qualified appraisers, because the
corporation receives the compensation,
not the individual employees. Similar
comments were received from otherwise
qualified individual appraisers who do
not regularly receive compensation. The
proposed regulations address both of
these concerns by not separately stating
a compensation requirement.
Expressing concerns about identity
theft, some commenters requested
elimination of the requirements of
supplying the appraiser’s taxpayer
identification number on Form 8283
and in the appraisal, as currently
required under §§ 1.170A–13(c)(3)(ii)(E)
and 1.170A–13(c)(4)(ii)(I). The concern
arises from appraisers who do not have
a taxpayer identification number other
than a social security number. The
proposed regulations continue to
require this information because,
pursuant to § 301.6109–1(a)(1)(ii)(D) of
the Procedure and Administration
Regulations, an appraiser may obtain an
employer identification number even if

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the appraiser does not have employees.
This number may be obtained by
completing Form SS–4, ‘‘Application for
Employer Identification Number.’’ See
Pub. 1635, ‘‘Understanding Your
Employer Identification Number.’’ If an
appraiser is employed by a firm, the
firm’s employer identification number
should be used.
Taxpayers are reminded that the IRS
may challenge the amount of a claimed
deduction, even if the donor
substantiates the amount of the
deduction with a qualified appraisal
prepared by a qualified appraiser.
C. Clothing and Household Items
Section 1.170A–18 of the proposed
regulations implements section
170(f)(16), which provides that no
deduction is allowed for any
contribution of clothing or a household
item unless it is in good used condition
or better. The purpose of this provision
relates to ensuring that donated clothing
and household items are ‘‘of meaningful
use to charitable organizations.’’ Joint
Committee on Taxation, Technical
Explanation of H.R. 4, the ‘‘Pension
Protection Act of 2006’’ (Aug. 3, 2006).
The IRS and the Treasury Department
are aware that a number of charities
publish donation guidelines listing
items the charity will and will not
accept, and believe that the guidelines
are helpful in ensuring that charities
receive donations of items that are of
meaningful use to the charity. The IRS
and the Treasury Department request
comments regarding how donation
guidelines published by a charity may
relate to the ‘‘good used condition’’
requirement in section 170(f)(16).
Under the proposed regulations, no
deduction is allowed unless the clothing
or household item is in good used
condition or better at the time of the
contribution. The proposed regulations
also provide that this rule does not
apply to a contribution of a single item
of clothing or a household item for
which a donor claims a deduction of
more than $500 if the donor submits a
qualified appraisal with the return on
which the deduction is claimed. Several
commenters questioned whether a
qualified appraisal is required for any
contribution of an item of clothing or a
household item with a claimed value
over $500. If the item is not in good
used condition or better and a
deduction in excess of $500 is claimed,
the taxpayer must obtain a qualified
appraisal and file a completed Form
8283 (Section B) with the return on
which the deduction is claimed. If the
item is in good used condition or better
and a deduction in excess of $500 is
claimed, the taxpayer must file a

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completed Form 8283 (Section A or B
depending on the type of contribution
and claimed amount), but a qualified
appraisal is required only if the claimed
contribution amount exceeds $5,000.
If the donor claims a deduction of less
than $250, § 1.170A–16(a) of the
proposed regulations requires that the
donor obtain a receipt from the donee or
maintain reliable written records of the
contribution. A reliable written record
for a contribution of clothing or a
household item must include a
description of the condition of the item.
If the donor claims a deduction of $250
or more, the donor must obtain from the
donee a receipt that meets the
requirements of section 170(f)(8)
(contemporaneous written
acknowledgment).

Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written comments (a signed original and
eight (8) copies) or electronic comments
that are submitted timely to the IRS. The
IRS and the Treasury Department
request comments on the clarity of the
proposed rules and how they can be
made easier to understand. All
comments will be available for public
inspection and copying. A public
hearing will be scheduled if requested
in writing by any person that timely
submits comments. If a public hearing is
scheduled, notice of the date, time, and
place for the public hearing will be
published in the Federal Register.

Proposed Effective/Applicability Date

Drafting Information
The principal author of this regulation
is Susan J. Kassell of the Office of
Associate Chief Counsel (Income Tax
and Accounting). Other personnel from
the IRS and the Treasury Department
participated in its development.

These proposed regulations are
proposed to apply to contributions
occurring after the date these
regulations are published as final
regulations in the Federal Register.
Taxpayers should continue to comply
with the recordkeeping and return
requirements in § 1.170A–13 of the
existing regulations to the extent those
provisions are not superseded by the
Jobs Act or the PPA.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
is hereby certified that these regulations
will not have a significant economic
impact on a substantial number of small
entities. Therefore, a regulatory
flexibility analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is
not required. This certification is based
on the belief of the IRS and the Treasury
Department that these regulations
reduce the burden on taxpayers by
clarifying and simplifying the existing
substantiation and reporting
requirements for charitable
contributions. Furthermore, to the
extent these regulations contain
requirements that may impact small
entities that are not contained in the
current substantiation and reporting
rules, those additional requirements are
based on statutory changes to the rules
that are being incorporated into the
regulations. Pursuant to section 7805(f)
of the Internal Revenue Code, this
notice of proposed rulemaking has been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small businesses.

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List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Partial Withdrawal of Proposed
Regulations
Accordingly, under the authority of
26 U.S.C. 7805, § 1.170A–13 of the
notice of proposed rulemaking (LR–83–
87) that was published in the Federal
Register on Thursday May 5, 1988 (53
FR 16156) is withdrawn.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding entries
in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
§ 1.170A–15 also issued under 26 U.S.C.
170(a)(1). § 1.170A–16 also issued under 26
U.S.C. 170(a)(1) and 170(f)(11). § 1.170A–17
also issued under 26 U.S.C. 170(a)(1) and
170(f)(11). § 1.170A–18 also issued under 26
U.S.C. 170(a)(1).
§§ 1.170–0 and 1.170–2

[Removed]

Par. 2. Sections 1.170–0 and 1.170–2
are removed.
§ 1.170A–13

[Amended]

Par. 3. In § 1.170A–13, paragraphs
(a)(3), (b)(3)(i)(B), (b)(4), and (d) are
removed.
Par. 4. Section 1.170A–15 is added to
read as follows:

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§ 1.170A–15 Substantiation requirements
for charitable contribution of a cash, check,
or other monetary gift.

(a) In general—(1) Bank record or
written communication required. No
deduction is allowed under section
170(a) for a charitable contribution in
the form of a cash, check, or other
monetary gift (as described in paragraph
(b)(1) of this section) unless the donor
substantiates the deduction with a bank
record (as described in paragraph (b)(2)
of this section) or a written
communication (as described in
paragraph (b)(3) of this section) from the
donee showing the name of the donee,
the date of the contribution, and the
amount of the contribution.
(2) Additional substantiation required
for contributions of $250 or more. No
deduction is allowed under section
170(a) for any contribution of $250 or
more unless the donor substantiates the
contribution with a contemporaneous
written acknowledgment (as described
in section 170(f)(8) and § 1.170A–13(f))
from the donee.
(3) Single document may be used. The
requirements of paragraphs (a)(1) and
(a)(2) of this section may be met by a
single document that contains all the
information required by paragraphs
(a)(1) and (a)(2) of this section, if the
single document is obtained by the
donor no later than the date prescribed
by paragraph (c) of this section.
(b) Terms—(1) Monetary gift includes
a transfer of a gift card redeemable for
cash, and a payment made by credit
card, electronic fund transfer (as
described in section 5061(e)(2)), an
online payment service, or payroll
deduction.
(2) Bank record includes a statement
from a financial institution, an
electronic fund transfer receipt, a
canceled check, a scanned image of both
sides of a canceled check obtained from
a bank Web site, or a credit card
statement.
(3) Written communication includes
electronic mail correspondence.
(c) Deadline for receipt of
substantiation. The substantiation
described in paragraph (a) of this
section must be received by the donor
on or before the earlier of—
(1) The date the donor files the
original return for the taxable year in
which the contribution was made; or
(2) The due date (including
extensions) for filing the donor’s
original return for that year.
(d) Distributing organizations as
donees—(1) In general. The following
organizations are treated as donees for
purposes of section 170(f)(17) and
paragraph (a) of this section, even if the
organization (pursuant to the donor’s

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instructions or otherwise) distributes
the amount received to one or more
organizations described in section
170(c):
(i) An organization described in
section 170(c).
(ii) An organization described in 5
CFR 950.105 (a Principal Combined
Fund Organization for purposes of the
Combined Federal Campaign) and
acting in that capacity.
(2) Contributions made by payroll
deduction. In the case of a charitable
contribution made by payroll deduction,
a donor is treated as meeting the
requirements of section 170(f)(17) and
paragraph (a) of this section if, no later
than the date described in paragraph (c)
of this section, the donor obtains—
(i) A pay stub, Form W–2, ‘‘Wage and
Tax Statement,’’ or other employerfurnished document that sets forth the
amount withheld during the taxable
year for payment to a donee; and
(ii) A pledge card or other document
prepared by or at the direction of the
donee that shows the name of the
donee.
(e) Substantiation of out-of-pocket
expenses. Paragraph (a)(1) of this
section does not apply to a donor who
incurs unreimbursed expenses of less
than $250 incident to the rendition of
services, within the meaning of
§ 1.170A–1(g). For substantiation of
unreimbursed out-of-pocket expenses of
$250 or more, see § 1.170A–13(f)(10).
(f) Charitable contributions made by
partnership or S corporation. If a
partnership or an S corporation makes
a charitable contribution, the
partnership or S corporation is treated
as the donor for purposes of section
170(f)(17) and paragraph (a) of this
section.
(g) Transfers to certain trusts. The
requirements of section 170(f)(17) and
paragraph (a)(1) of this section do not
apply to a transfer of a cash, check, or
other monetary gift to a trust described
in section 170(f)(2)(B), a charitable
remainder annuity trust (as defined in
section 664(d)(1)), or a charitable
remainder unitrust (as defined in
section 664(d)(2) or (d)(3) or § 1.664–
3(a)(1)(i)(b)). The requirements of
section 170(f)(17) and paragraphs (a)(1)
and (a)(2) of this section do apply,
however, to a transfer to a pooled
income fund (as defined in section
642(c)(5)). For contributions of $250 or
more, see section 170(f)(8) and
§ 1.170A–13(f)(13).
(h) Effective/applicability date. This
section applies to contributions made
after the date these regulations are
published as final regulations in the
Federal Register.

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Par. 5. Section 1.170A–16 is added to
read as follows:
§ 1.170A–16 Substantiation and reporting
requirements for noncash charitable
contributions.

(a) Substantiation of charitable
contributions of less than $250—(1)
Individuals, partnerships, and certain
corporations required to obtain receipt.
Except as provided in paragraph (a)(2)
of this section, no deduction is allowed
under section 170(a) for a noncash
charitable contribution of less than $250
by an individual, partnership, S
corporation, or C corporation that is a
personal service corporation or closely
held corporation unless the donor
maintains for each contribution a
receipt from the donee showing the
following information:
(i) The name and address of the
donee;
(ii) The date of the contribution;
(iii) A description of the property in
sufficient detail under the
circumstances (taking into account the
value of the property) for a person who
is not generally familiar with the type of
property to ascertain that the described
property is the contributed property;
and
(iv) In the case of securities, the name
of the issuer, the type of security, and
whether the securities are publicly
traded securities within the meaning of
§ 1.170A–13(c)(7)(xi).
(2) Substitution of reliable written
records—(i) In general. If it is
impractical to obtain a receipt (for
example, a donor deposits canned food
at a donee’s unattended drop site), the
donor may satisfy the recordkeeping
rules of this paragraph (a)(2)(i) by
maintaining reliable written records (as
described in paragraphs (a)(2)(ii) and
(a)(2)(iii) of this section) for the
contributed property.
(ii) Reliable written records. The
reliability of written records is to be
determined on the basis of all of the
facts and circumstances of a particular
case, including the contemporaneous
nature of the writing evidencing the
contribution.
(iii) Contents of reliable written
records. Reliable written records must
include—
(A) The information required by
paragraph (a)(1) of this section;
(B) The fair market value of the
property on the date the contribution
was made;
(C) The method used in determining
the fair market value; and
(D) In the case of a contribution of
clothing or a household item as defined
in § 1.170A–18(c), the condition of the
item.

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(3) Additional substantiation rules
may apply. For additional
substantiation rules, see paragraph (f) of
this section.
(b) Substantiation of charitable
contributions of $250 or more but not
more than $500. No deduction is
allowed under section 170(a) for a
noncash charitable contribution of $250
or more but not more than $500 unless
the donor substantiates the contribution
with a contemporaneous written
acknowledgment (as described in
section 170(f)(8) and § 1.170A–13(f)).
(c) Substantiation of charitable
contributions of more than $500 but not
more than $5,000—(1) In general. No
deduction is allowed under section
170(a) for a noncash charitable
contribution of more than $500 but not
more than $5,000 unless the donor
substantiates the contribution with a
contemporaneous written
acknowledgment (as described in
section 170(f)(8) and § 1.170A–13(f))
and meets the applicable requirements
of this section.
(2) Individuals, partnerships, and
certain corporations also required to file
Form 8283 (Section A). No deduction is
allowed under section 170(a) for a
noncash charitable contribution of more
than $500 but not more than $5,000 by
an individual, partnership, S
corporation, or C corporation that is a
personal service corporation or closely
held corporation unless the donor—
(i) Substantiates the contribution with
a contemporaneous written
acknowledgment (as described in
section 170(f)(8) and § 1.170A–13(f));
and
(ii) Completes Form 8283 (Section A),
‘‘Noncash Charitable Contributions’’ (as
provided in paragraph (c)(3) of this
section), or a successor form, and files
it with the return on which the
deduction is claimed.
(3) Completion of Form 8283 (Section
A). A completed Form 8283 (Section A)
includes—
(i) The donor’s name and taxpayer
identification number (social security
number if the donor is an individual or
employer identification number if the
donor is a partnership or corporation);
(ii) The name and address of the
donee;
(iii) The date of the contribution;
(iv) The following information about
the contributed property:
(A) A description of the property in
sufficient detail under the
circumstances (taking into account the
value of the property) for a person who
is not generally familiar with the type of
property to ascertain that the described
property is the contributed property;

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(B) In the case of real or personal
property, the condition of the property;
(C) In the case of securities, the name
of the issuer, the type of security, and
whether the securities are publicly
traded securities within the meaning of
§ 1.170A–13(c)(7)(xi); and
(D) The fair market value of the
property on the date the contribution
was made and the method used in
determining the fair market value;
(v) The manner of acquisition (for
example, by purchase, gift, bequest,
inheritance, or exchange), and the
approximate date of acquisition of the
property by the donor (except that in the
case of a contribution of publicly traded
securities as defined in § 1.170A–
13(c)(7)(xi), a representation that the
donor held the securities for more than
one year is sufficient) or, if the property
was created, produced, or manufactured
by or for the donor, the approximate
date the property was substantially
completed;
(vi) The cost or other basis, adjusted
as provided by section 1016, of the
property (except that the cost or basis is
not required for contributions of
publicly traded securities (as defined in
§ 1.170A–13(c)(7)(xi)) that if sold on the
contribution date would have resulted
in long term capital gain);
(vii) In the case of tangible personal
property, whether the donee has
certified it for a use related to the
purpose or function constituting the
donee’s basis for exemption under
section 501 (or in the case of a
governmental unit, an exclusively
public purpose); and
(viii) Any other information required
by Form 8283 (Section A) or the
instructions to Form 8283 (Section A).
(4) Additional requirement for certain
motor vehicle contributions. In the case
of a contribution of a qualified vehicle
described in section 170(f)(12)(A)(ii) for
which an acknowledgment under
section 170(f)(12)(B)(iii) is provided to
the IRS by the donee organization, the
donor must attach a copy of the
acknowledgment to the Form 8283
(Section A) for the return on which the
deduction is claimed.
(5) Additional substantiation rules
may apply. For additional
substantiation rules, see paragraph (f) of
this section.
(d) Substantiation of charitable
contributions of more than $5,000—(1)
In general. Except as provided in
paragraph (d)(2) of this section, no
deduction is allowed under section
170(a) for a noncash charitable
contribution of more than $5,000 unless
the donor—
(i) Substantiates the contribution with
a contemporaneous written

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acknowledgment (as described in
section 170(f)(8) and § 1.170A–13(f));
(ii) Obtains a qualified appraisal (as
defined in § 1.170A–17(a)(1)) prepared
by a qualified appraiser (as defined in
§ 1.170A–17(b)(1)); and
(iii) Completes Form 8283 (Section B)
(as provided in paragraph (d)(3) of this
section), or a successor form, and files
it with the return on which the
deduction is claimed.
(2) Exception for certain noncash
contributions. A qualified appraisal is
not required, and a completed Form
8283 (Section A) (containing the
information required in paragraph (c)(3)
of this section) meets the requirements
of paragraph (d)(1)(iii) of this section for
contributions of—
(i) Publicly traded securities as
defined in § 1.170A–13(c)(7)(xi);
(ii) Property described in section
170(e)(1)(B)(iii)(certain intellectual
property);
(iii) A qualified vehicle described in
section 170(f)(12)(A)(ii) for which an
acknowledgment under section
170(f)(12)(B)(iii) is provided to the IRS
by the donee organization and attached
to the Form 8283 (Section A) by the
donor; and
(v) Property described in section
1221(a)(1) (inventory and property held
by the donor primarily for sale to
customers in the ordinary course of the
donor’s trade or business).
(3) Completed Form 8283 (Section B).
A completed Form 8283 (Section B)
includes—
(i) The donor’s name and taxpayer
identification number (social security
number if the donor is an individual or
employer identification number if the
donor is a partnership or corporation);
(ii) The donee’s name, address,
taxpayer identification number, and
signature, the date signed by the donee,
and the date the donee received the
property;
(iii) The appraiser’s name, address,
taxpayer identification number,
appraiser declaration (as described in
paragraph (d)(4) of this section),
signature, and the date signed by the
appraiser;
(iv) The following information about
the contributed property:
(A) The fair market value on the
valuation effective date (as defined in
§ 1.170A–17(a)(5)(i)).
(B) A description in sufficient detail
under the circumstances (taking into
account the value of the property) for a
person who is not generally familiar
with the type of property to ascertain
that the described property is the
contributed property.

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(C) In the case of real or tangible
personal property, the condition of the
property;
(v) The manner of acquisition (for
example, by purchase, gift, bequest,
inheritance, or exchange), and the
approximate date of acquisition of the
property by the donor, or, if the
property was created, produced, or
manufactured by or for the donor, the
approximate date the property was
substantially completed;
(vi) The cost or other basis, adjusted
as provided by section 1016;
(vii) A statement explaining whether
the charitable contribution was made by
means of a bargain sale and, if so, the
amount of any consideration received
from the donee for the contribution; and
(viii) Any other information required
by Form 8283 (Section B) or the
instructions to Form 8283 (Section B).
(4) Appraiser declaration. The
appraiser declaration referred to in
paragraph (d)(3)(iii) of this section must
include the following statement: ‘‘I
understand that my appraisal will be
used in connection with a return or
claim for refund. I also understand that,
if a substantial or gross valuation
misstatement of the value of the
property claimed on the return or claim
for refund results from my appraisal, I
may be subject to a penalty under
section 6695A of the Internal Revenue
Code, as well as other applicable
penalties. I affirm that I have not been
barred from presenting evidence or
testimony before the Department of the
Treasury or the Internal Revenue
Service pursuant to 31 U.S.C. section
330(c).’’
(5) Donee signature—(i) Person
authorized to sign. The person who
signs Form 8283 for the donee must be
either an official authorized to sign the
tax or information returns of the donee,
or a person specifically authorized to
sign Forms 8283 by that official. In the
case of a donee that is a governmental
unit, the person who signs Form 8283
for the donee must be an official of the
governmental unit.
(ii) Effect of donee signature. The
signature of the donee on Form 8283
does not represent concurrence in the
appraised value of the contributed
property. Rather, it represents
acknowledgment of receipt of the
property described in Form 8283 on the
date specified in Form 8283 and that the
donee understands the information
reporting requirements imposed by
section 6050L and § 1.6050L–1.
(iii) Certain information not required
on Form 8283 before donee signs. Before
Form 8283 is signed by the donee, Form
8283 must be completed (as described
in paragraph (d)(3) of this section),

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except that it is not required to contain
the following:
(A) Information about the qualified
appraiser or the appraiser declaration.
(B) The manner or date of acquisition.
(C) The cost or other basis of the
property.
(D) The appraised fair market value of
the contributed property.
(E) The amount claimed as a
charitable contribution.
(6) Additional substantiation rules
may apply. For additional
substantiation rules, see paragraph (f) of
this section.
(e) Substantiation of noncash
charitable contributions of more than
$500,000—(1) In general. Except as
provided in paragraph (e)(2) of this
section, no deduction is allowed under
section 170(a) for a noncash charitable
contribution of more than $500,000
unless the donor—
(i) Substantiates the contribution with
a contemporaneous written
acknowledgment (as described in
section 170(f)(8) and § 1.170A–13(f));
(ii) Obtains a qualified appraisal (as
defined in § 1.170A–17(a)(1)) prepared
by a qualified appraiser (as defined in
§ 1.170A–17(b)(1));
(iii) Completes (as described in
paragraph (d)(3) of this section) Form
8283 (Section B) and files it with the
return on which the deduction is
claimed; and
(iv) Attaches the qualified appraisal of
the property to the return on which the
deduction is claimed.
(2) Exception for certain noncash
contributions. For contributions of
property described in paragraph (d)(2)
of this section, a qualified appraisal is
not required, and a completed Form
8283 (Section A) (containing the
information required in paragraph (c)(3)
of this section) meets the requirements
of paragraph (e)(1)(iii) of this section.
(3) Additional substantiation rules
may apply. For additional
substantiation rules, see paragraph (f) of
this section.
(f) Additional substantiation
requirements that may be applicable to
any noncash contribution—(1) Signed
Form 8283 furnished by donor to donee.
A donor who presents a Form 8283 to
a donee for signature must furnish to the
donee a copy of Form 8283 as signed by
the donee.
(2) Number of Forms 8283—(i) In
general. For each item of contributed
property for which a Form 8283 is
required under paragraphs (c), (d), or (e)
of this section, a donor must attach a
separate Form 8283 to the return on
which the deduction for the item is
claimed.
(ii) Exception for similar items. The
donor may attach a single Form 8283 for

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all similar items of property (as defined
in § 1.170A–13(c)(7)(iii)) contributed to
the same donee during the donor’s
taxable year, if the donor includes on
Form 8283 the information required by
paragraph (c)(3) or (d)(3) of this section
for each item of property.
(3) Substantiation requirements for
carryovers of noncash contribution
deductions. The rules in paragraphs
(c)(2)(ii), (d)(1)(iii), (d)(2), (e)(1)(iii) and
(e)(1)(iv) of this section (regarding
substantiation that must be submitted
with a return) apply to the return for
any carryover year under section 170(d).
(4) Partners and S corporation
shareholders—(i) Form 8283 must be
provided to partners and S corporation
shareholders. If the donor is a
partnership or S corporation, the donor
must provide a copy of the completed
Form 8283 to every partner or
shareholder who receives an allocation
of a charitable contribution deduction
under section 170 for the property
described in Form 8283.
(ii) Partners and S corporation
shareholders must attach Form 8283 to
return. A partner of a partnership or
shareholder of an S corporation who
receives an allocation of a deduction
under section 170 for a charitable
contribution of property to which
paragraphs (c), (d), or (e) of this section
applies must attach a copy of the
partnership’s or S corporation’s
completed Form 8283 to the return on
which the deduction is claimed.
(5) Determination of deduction
amount for purposes of substantiation
rules—(i) In general. In determining
whether the amount of a donor’s
deduction exceeds the amounts set forth
in section 170(f)(11)(B) (noncash
contributions exceeding $500),
170(f)(11)(C) (noncash contributions
exceeding $5,000), or 170(f)(11)(D)
(noncash contributions exceeding
$500,000), the rules of paragraphs
(f)(5)(ii) and (f)(5)(iii) of this section
apply.
(ii) Similar items of property must be
aggregated. Under section 170(f)(11)(F),
the donor must aggregate the amount
claimed as a deduction for all similar
items of property (as defined in
§ 1.170A–13(c)(7)(iii)) contributed
during the taxable year. For rules
regarding the number of qualified
appraisals and Forms 8283 required if
similar items of property are
contributed, see §§ 1.170A–
13(c)(3)(iv)(A) and 1.170A–
13(c)(4)(iv)(B).
(iii) For contributions of certain
inventory and scientific property, excess
of amount claimed over cost of goods
sold taken into account. (A) In general.
In determining the amount of a donor’s

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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules
contribution of property to which
section 170(e)(3) or (4) applies, the
donor must take into account only the
excess of the amount claimed as a
deduction over the amount that would
have been treated as the cost of goods
sold if the donor had sold the
contributed property to the donee.
(B) Example. The following example
illustrates the rule of this paragraph
(f)(5)(iii):
Example. X Corporation makes a
contribution to which section 170(e)(3)
applies of clothing for the care of the needy.
The cost of the property to X Corporation is
$5,000, and, pursuant to section 170(e)(3)(B),
X Corporation claims a charitable
contribution deduction of $8,000. The
amount taken into account for purposes of
determining the $5,000 threshold of
paragraph (d) of this section is $3,000 ($8,000
¥ $5,000).

(6) Failure due to reasonable cause. If
a donor fails to meet the requirements
of paragraphs (c), (d), or (e) of this
section, the donor’s deduction will be
disallowed unless the donor establishes
that the failure was due to reasonable
cause and not to willful neglect. The
donor may establish that the failure was
due to reasonable cause and not to
willful neglect only if the donor—
(i) Submits with the return a detailed
explanation that the failure to meet the
requirements of this section was due to
reasonable cause and not to willful
neglect;
(ii) Obtained a contemporaneous
written acknowledgment (as required by
section 170(f)(8) and § 1.170A–13(f)(3));
and
(iii) Obtained a qualified appraisal (as
defined by section 170(f)(11)(E)(i) and
§ 1.170A–17(a)(1)) prepared by a
qualified appraiser (as defined by
section 170(f)(11)(E)(ii) and § 1.170A–
17(b)(1)) within the dates specified in
§ 1.170A–17(a)(4), if required.
(7) Additional requirement for returns
claiming conservation easements for
buildings in registered historic districts.
[Reserved]
(g) Effective/applicability date. This
section applies to contributions made
after the date these regulations are
published as final regulations in the
Federal Register.
Par. 6. Section 1.170A–17 is added to
read as follows:

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§ 1.170A–17 Qualified appraisal and
qualified appraiser.

(a) Qualified appraisal—(1)
Definition. For purposes of section
170(f)(11) and §§ 1.170A–16(d)(1)(ii)
and 1.170A–16(e)(1)(ii), the term
qualified appraisal means an appraisal
document that is prepared by a qualified
appraiser (as defined in paragraph (b)(1)

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of this section) in accordance with
generally accepted appraisal standards
(as defined in paragraph (a)(2) of this
section) and otherwise complies with
the requirements of this paragraph (a).
(2) Generally accepted appraisal
standards defined. For purposes of
paragraph (a)(1) of this section,
generally accepted appraisal standards
means the substance and principles of
the Uniform Standards of Professional
Appraisal Practice, as developed by the
Appraisal Standards Board of the
Appraisal Foundation.
(3) Contents of qualified appraisal. A
qualified appraisal must include—
(i) The following information about
the contributed property:
(A) A description in sufficient detail
under the circumstances (taking into
account the value of the property) for a
person who is not generally familiar
with the type of property to ascertain
that the appraised property is the
contributed property.
(B) In the case of real or personal
tangible property, the condition of the
property.
(C) The valuation effective date (as
defined in paragraph (a)(5)(i) of this
section).
(D) The fair market value (within the
meaning of § 1.170A–1(c)(2)) of the
contributed property on the valuation
effective date;
(ii) The terms of any agreement or
understanding by or on behalf of the
donor and donee that relates to the use,
sale, or other disposition of the
contributed property, including, for
example, the terms of any agreement or
understanding that—
(A) Restricts temporarily or
permanently a donee’s right to use or
dispose of the contributed property;
(B) Reserves to, or confers upon,
anyone (other than a donee or an
organization participating with a donee
in cooperative fundraising) any right to
the income from the contributed
property or to the possession of the
property, including the right to vote
contributed securities, to acquire the
property by purchase or otherwise, or to
designate the person having income,
possession, or right to acquire; or
(C) Earmarks contributed property for
a particular use;
(iii) The date (or expected date) of the
contribution to the donee;
(iv) The following information about
the appraiser:
(A) Name, address, and taxpayer
identification number.
(B) Qualifications to value the type of
property being valued, including the
appraiser’s education and experience.
(C) If the appraiser is acting in his or
her capacity as a partner in a

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45917

partnership, an employee of any person
(whether an individual, corporation, or
partnership), or an independent
contractor engaged by a person other
than the donor, the name, address, and
taxpayer identification number of the
partnership or the person who employs
or engages the qualified appraiser;
(v) The signature of the appraiser and
the date signed by the appraiser
(appraisal report date);
(vi) The following declaration by the
appraiser: ‘‘I understand that my
appraisal will be used in connection
with a return or claim for refund. I also
understand that, if a substantial or gross
valuation misstatement of the value of
the property claimed on the return or
claim for refund results from my
appraisal, I may be subject to a penalty
under section 6695A of the Internal
Revenue Code, as well as other
applicable penalties. I affirm that I have
not been barred from presenting
evidence or testimony before the
Department of the Treasury or the
Internal Revenue Service pursuant to 31
U.S.C. section 330(c);’’
(vii) A statement that the appraisal
was prepared for income tax purposes;
(viii) The method of valuation used to
determine the fair market value, such as
the income approach, the market-data
approach, or the replacement-cost-lessdepreciation approach; and
(ix) The specific basis for the
valuation, such as specific comparable
sales transactions or statistical
sampling, including a justification for
using sampling and an explanation of
the sampling procedure employed.
(4) Timely appraisal report. A
qualified appraisal must be signed and
dated by the qualified appraiser no
earlier than 60 days before the date of
the contribution and no later than—
(i) The due date (including
extensions) of the return on which the
deduction for the contribution is first
claimed;
(ii) In the case of a donor that is a
partnership or S corporation, the due
date (including extensions) of the return
on which the deduction for the
contribution is first reported; or
(iii) In the case of a deduction first
claimed on an amended return, the date
on which the amended return is filed.
(5) Valuation effective date—(i)
Definition. The valuation effective date
is the date to which the value opinion
applies.
(ii) Timely valuation effective date.
For an appraisal report dated before the
date of the contribution (as described in
§ 1.170A–1(b)), the valuation effective
date must be no earlier than 60 days
before the date of the contribution and
no later than the date of the

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contribution. For an appraisal report
dated on or after the date of the
contribution, the valuation effective
date must be the date of the
contribution.
(6) Exclusion for donor knowledge of
falsity. An appraisal is not a qualified
appraisal for a particular contribution,
even if the requirements of this
paragraph (a) are met, if a reasonable
person would conclude that the donor
failed to disclose or misrepresented
facts that would cause the appraiser to
overstate the value of the contributed
property.
(7) Number of appraisals required. A
donor must obtain a separate qualified
appraisal for each item of property for
which an appraisal is required under
paragraphs (c), (d), or (e) of this section
and that is not included in a group of
similar items of property (as defined in
§ 1.170A–13(c)(7)(iii)). For rules
regarding the number of appraisals
required if similar items of property are
contributed, see § 1.170A–
13(c)(3)(iv)(A).
(8) Prohibited appraisal fees. The fee
for a qualified appraisal cannot be based
to any extent on the appraised value of
the property. For example, a fee for an
appraisal will be treated as based on the
appraised value of the property if any
part of the fee depends on the amount
of the appraised value that is allowed by
the IRS after an examination.
(9) Retention of qualified appraisal.
The donor must retain the qualified
appraisal for so long as it may be
relevant in the administration of any
internal revenue law.
(10) Appraisal disregarded pursuant
to 31 U.S.C. 330(c). If an appraisal is
disregarded pursuant to 31 U.S.C.
330(c), it has no probative effect as to
the value of the appraised property and
does not satisfy the appraisal
requirements of paragraphs (d) and (e)
of this section, unless the appraisal and
Form 8283 include the appraiser
signature, the date signed by the
appraiser, and the appraiser declaration
described in paragraphs (a)(3)(v) and
(a)(3)(vi) of this section and §§ 1.170A–
16(d)(3)(iii) and (d)(4), and the donor
had no knowledge that the signature,
date, or declaration was false when the
appraisal and Form 8283 were signed by
the appraiser.
(11) Partial interest. If the contributed
property is a partial interest, the
appraisal must be of the partial interest.
(b) Qualified appraiser—(1)
Definition. For purposes of section
170(f)(11) and §§ 1.170A–16(d)(1)(ii)
and 1.170A–16(e)(1)(ii), the term
qualified appraiser means an individual
with verifiable education and
experience in valuing the relevant type

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of property for which the appraisal is
performed (as described in paragraphs
(b)(2) through (b)(4) of this section).
(2) Education and experience in
valuing relevant type of property. (i) In
general. An individual is treated as
having education and experience in
valuing the relevant type of property
within the meaning of paragraph (b)(1)
of this section if, as of the date the
individual signs the appraisal, the
individual has—
(A) Successfully completed (for
example, received a passing grade on a
final examination) professional or
college-level coursework (as described
in paragraph (b)(2)(ii) of this section) in
valuing the relevant type of property (as
described in paragraph (b)(3) of this
section), and has two or more years of
experience in valuing the relevant type
of property (as described in paragraph
(b)(3) of this section); or
(B) Earned a recognized appraisal
designation (as described in paragraph
(b)(2)(iii) of this section) for the relevant
type of property (as described in
paragraph (b)(3) of this section).
(ii) Coursework must be obtained from
professional or college-level educational
institution, appraisal organization, or
employer educational program. For
purposes of paragraph (b)(2)(i)(A) of this
section, the coursework must be
obtained from—
(A) A professional or college-level
educational organization described in
section 170(b)(1)(A)(ii);
(B) A generally recognized
professional appraisal organization that
regularly offers educational programs in
the principles of valuation; or
(C) An employer as part of an
employee apprenticeship or educational
program substantially similar to the
educational programs described in
paragraphs (b)(2)(ii)(A) and (B) of this
section.
(iii) Recognized appraisal designation
defined. A recognized appraisal
designation means a designation
awarded by a recognized professional
appraiser organization on the basis of
demonstrated competency. For example,
an appraiser who has earned a
designation similar to the Member of the
Appraisal Institute (MAI), Senior
Residential Appraiser (SRA), Senior
Real Estate Appraiser (SREA), or Senior
Real Property Appraiser (SRPA)
membership designation has earned a
recognized appraisal designation.
(3) Relevant type of property
defined—(i) In general. The relevant
type of property means the category of
property customary in the appraisal
field for an appraiser to value.

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(ii) Examples. The following
examples illustrate the rule of paragraph
(b)(3)(i) of this section:
Example (1). Coursework in valuing
relevant type of property. There are very few
professional-level courses offered in widget
appraising, and it is customary in the
appraisal field for personal property
appraisers to appraise widgets. Appraiser A
has successfully completed professional-level
coursework in valuing personal property
generally but has completed no coursework
in valuing widgets. The coursework
completed by Appraiser A is for the relevant
type of property under paragraphs (b)(2)(i)
and (b)(3)(i) of this section.
Example (2). Experience in valuing
relevant type of property. It is customary for
professional antique appraisers to appraise
antique widgets. Appraiser A has 2 years of
experience in valuing antiques generally and
is asked to appraise an antique widget.
Appraiser A has obtained experience in
valuing the relevant type of property under
paragraphs (b)(2)(i) and (b)(3)(i) of this
section.
Example (3). No experience in valuing
relevant type of property. It is not customary
for professional antique appraisers to
appraise new widgets. Appraiser A has
experience in appraising antiques generally
but no experience in appraising new widgets.
Appraiser A is asked to appraise a new
widget. Appraiser A does not have
experience in valuing the relevant type of
property under paragraphs (b)(2)(i) and
(b)(3)(i) of this section.

(4) Verifiable. For purposes of
paragraph (b)(1) of this section,
education and experience in valuing the
relevant type of property are verifiable
if the appraiser specifies in the appraisal
the appraiser’s education and
experience in valuing the relevant type
of property (as described in paragraphs
(b)(2) and (b)(3) of this section), and the
appraiser makes a declaration in the
appraisal that, because of the appraiser’s
education and experience described in
this paragraph (b)(4), the appraiser is
qualified to make appraisals of the
relevant type of property being valued.
(5) Individuals who are not qualified
appraisers. The following individuals
cannot be qualified appraisers for the
appraised property:
(i) An individual who receives a fee
prohibited by paragraph (a)(8) of this
section.
(ii) The donor of the property.
(iii) A party to the transaction in
which the donor acquired the property
(for example, the individual who sold,
exchanged, or gave the property to the
donor, or any individual who acted as
an agent for the transferor or for the
donor for the sale, exchange, or gift),
unless the property is contributed
within 2 months of the date of
acquisition and its appraised value does
not exceed its acquisition price.

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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules
(iv) The donee of the property.
(v) Any individual who is either—
(A) Related (within the meaning of
section 267(b)) to, or an employee of,
any of the individuals described in
paragraphs (b)(5)(ii), (b)(5)(iii), or
(b)(5)(iv) of this section, or married to an
individual who is in a relationship
described in section 267(b) with any of
the foregoing individuals; or
(B) An independent contractor who is
regularly used as an appraiser by any of
the individuals described in paragraphs
(b)(5)(ii), (b)(5)(iii), or (b)(5)(iv) of this
section, and who does not perform a
majority of his or her appraisals for
others during the taxable year.
(vi) An individual who is prohibited
from practicing before the Internal
Revenue Service by the Secretary under
31 U.S.C. section 330(c) at any time
during the 3-year period ending on the
date the appraisal is signed by the
individual.
(c) Effective/applicability date. This
section applies to contributions made
after the date these regulations are
published as final regulations in the
Federal Register.
Par. 7. Section 1.170A–18 is added to
read as follows: § 1.170A–18
Contributions of clothing and household
items—(a) In general. Except as
provided in paragraph (b) of this
section, no deduction is allowed under
section 170(a) for a contribution of
clothing or a household item (as
described in paragraph (c) of this
section) unless—
(1) The item is in good used condition
or better at the time of the contribution;
and
(2) The donor meets the
substantiation requirements of
§ 1.170A–16.
(b) Certain contributions of clothing or
household items with claimed value of
more than $500. The rule described in
paragraph (a)(1) of this section does not
apply to a contribution of a single item
of clothing or a household item for
which a deduction of more than $500 is
claimed, if the donor submits with the
return on which the deduction is
claimed a qualified appraisal (as defined
in § 1.170A–17(a)(1)) of the property
prepared by a qualified appraiser (as
defined in § 1.170A–17(b)(1)) and a
completed Form 8283 (Section B) (as
described in § 1.170A–16(d)(3)).
(c) Definition of household items. For
purposes of section 170(f)(16) and this
section, the term household items
includes furniture, furnishings,
electronics, appliances, linens, and
other similar items. Food, paintings,
antiques, and other objects of art,
jewelry, gems, and collections are not
household items.

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(d) Effective/applicability date. This
section applies to contributions made
after the date these regulations are
published as final regulations in the
Federal Register.
Sherri L. Brown,
Acting Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–17953 Filed 8–6–08; 8:45 am]
BILLING CODE 4830–01–P

DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket No. USCG–2008–0761]
RIN 1625–AA08

Special Local Regulations for Marine
Events; St. Leonard Creek, Patuxent
River, Calvert County, MD
Coast Guard, DHS.
Notice of proposed rulemaking.

AGENCY:
ACTION:

SUMMARY: The Coast Guard proposes to
establish special local regulations
during the ‘‘War of 1812 North
American Grand Tactical’’, a marine
event to be held September 21, 2008 on
the waters of St. Leonard Creek and
Patuxent River, Calvert County, MD.
These special local regulations are
necessary to provide for the safety of life
on navigable waters during the event.
This action is intended to temporarily
restrict vessel traffic in a portion of St.
Leonard Creek and the Patuxent River
during the event.
DATES: Comments and related material
must reach the Coast Guard on or before
September 8, 2008.
ADDRESSES: You may submit comments
identified by Coast Guard docket
number USCG–2008–0761 to the Docket
Management Facility at the U.S.
Department of Transportation. To avoid
duplication, please use only one of the
following methods:
(1) Online: http://
www.regulations.gov.
(2) Mail: Docket Management Facility
(M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590–
0001.
(3) Hand delivery: Same as mail
address above, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. The telephone number
is 202–366–9329.
(4) Fax: 202–493–2251.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this proposed

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rule, call Dennis Sens, Project Manager,
Fifth Coast Guard District, Inspections
and Investigations Branch, at (757) 398–
6204. If you have questions on viewing
or submitting material to the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
Public Participation and Request for
Comments
We encourage you to participate in
this rulemaking by submitting
comments and related materials. All
comments received will be posted,
without change, to http://
www.regulations.gov and will include
any personal information you have
provided. We have an agreement with
the Department of Transportation to use
the Docket Management Facility.
Submitting Comments
If you submit a comment, please
include the docket number for this
rulemaking (USCG–2008–0761),
indicate the specific section of this
document to which each comment
applies, and give the reason for each
comment. We recommend that you
include your name and a mailing
address, an e-mail address, or a phone
number in the body of your document
so that we can contact you if we have
questions regarding your submission.
You may submit your comments and
material by electronic means, mail, fax,
or delivery to the Docket Management
Facility at the address under ADDRESSES;
but please submit your comments and
material by only one means. If you
submit them by mail or delivery, submit
them in an unbound format, no larger
than 81⁄2 by 11 inches, suitable for
copying and electronic filing. If you
submit them by mail and would like to
know that they reached the Facility,
please enclose a stamped, self-addressed
postcard or envelope. We will consider
all comments and material received
during the comment period. We may
change this proposed rule in view of
them.
Viewing Comments and Documents
To view comments, as well as
documents mentioned in this preamble
as being available in the docket, go to
http://www.regulations.gov at any time.
Enter the docket number for this
rulemaking (USCG–2008–0761) in the
Search box, and click ‘‘Go >>.’’ You may
also visit either the Docket Management
Facility in Room W12–140 on the
ground floor of the Department of
Transportation West Building, 1200
New Jersey Avenue, SE., Washington,
DC 20590, between 9 a.m. and 5 p.m.,

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