T.C. Summary Opinion 2008-93
UNITED STATES TAX COURT
DANIEL AND RUTH M. GOMEZ, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 13167-07S. Filed July 30, 2008.
Daniel and Ruth M. Gomez, pro sese.
Daniel N. Price, for respondent.
VASQUEZ, Judge: This case was heard pursuant to the
provisions of section 7463 of the Internal Revenue Code in effect
when the petition was filed.1 Pursuant to section 7463(b), the
decision to be entered is not reviewable by any other court, and
1
Unless otherwise indicated, all subsequent section
references are to the Internal Revenue Code in effect for the
year in issue, and all Rule references are to the Tax Court Rules
of Practice and Procedure.
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this opinion shall not be treated as precedent for any other
case.
Respondent determined a deficiency in petitioners’ 2005
Federal income tax of $4,313. After concessions,2 the issue for
decision is whether petitioners are entitled to deductions of
$6,885 for charitable contributions in tax year 2005.
Background
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference.
At the time they filed the petition, petitioners resided in
Texas.
During 2005 petitioners were members of the Apostolic
Assembly of the Faith In Christ Jesus (Apostolic Assembly), a
religious organization. As members of the Apostolic Assembly,
petitioners were required to tithe.3 Additionally, petitioners
both were members of gender-based auxiliary groups in which they
were required to pay yearly dues.
2
The parties agreed to disregard the deductions and income
claimed on Schedule E, Supplemental Income and Loss. The parties
further agreed that petitioners are entitled to a $1,716
deduction for unreimbursed employee business expenses, and that
petitioners are entitled to deduct an additional $1,500 for
property taxes on Schedule A, Itemized Deductions, for property
they initially claimed on Schedule E, Supplemental Income and
Loss.
3
To pay or give a tenth part of esp. for the support of a
church (Merriam-Webster’s Collegiate Dictionary (10th ed. 1996)).
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During 2005 petitioners paid a total of $6,548.27 to the
Apostolic Assembly by 20 separate checks.4 The memo entries on
the checks indicated that petitioners wrote two of the checks for
food items, for a total of $27.77.5 The remaining checks either
had memo entries that indicated they were for tithes, which
petitioners noted in Spanish as “diezmos”, or dues for the
auxiliaries, which petitioners noted as “mano-mano” for the men’s
auxiliary and “quotas” for the women’s auxiliary, or had no memo
entry at all. Ten of the checks, for a total of $6,100,
indicated that they were for tithes, and each check was over
$250. A letter from the Apostolic Assembly, dated January 22,
2008, indicated that petitioners paid a total of $6,552 as tithes
during 2005.6
Petitioners timely filed their joint 2005 Federal income tax
return. Petitioners claimed a $6,885 charitable contribution
deduction on their Schedule A, Itemized Deductions.
In the notice of deficiency respondent disallowed
petitioners’ claimed charitable contribution deduction as
reported on their 2005 return. Respondent disallowed the claimed
4
This amount differs from the amount petitioners claimed
as contributions on Schedule A of their 2005 income tax return.
5
At trial, petitioners conceded that these two amounts
were not deductible.
6
This amount differs from the amount petitioners deducted
as contributions on Schedule A of their 2005 income tax return
and the amount they corroborated through the canceled checks.
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charitable contribution deduction because petitioners failed to
adequately substantiate the charitable contributions.
Discussion
A charitable contribution is a contribution or gift to a
qualified organization. Sec. 170(c). In general, a taxpayer is
allowed to deduct any donations, contributions, or gifts made to
a qualifying organization. Sec. 170(a), (c). A taxpayer making
a charitable contribution of money must keep canceled checks or a
receipt from the donee charitable organization showing the name
of the donee, the date of the contribution, and the amount of the
contribution. Sec. 1.170A-13(a)(1)(i) and (ii), Income Tax Regs.
The reliability of the records is determined on the basis of all
of the relevant facts and circumstances. See sec. 1.170A-
13(a)(2), Income Tax Regs.
No deduction is allowed pursuant to section 170(a) for all
or part of any contribution of $250 or more unless the taxpayer
substantiates the contribution with a contemporaneous written
acknowledgment from the donee organization. Sec. 170(f)(8)(A).
Further, a written acknowledgment is contemporaneous if it is
obtained by the taxpayer on or before the earlier of (1) the date
on which the taxpayer files a return for the taxable year in
which the contribution was made, or (2) the due date (including
extensions) for filing such return. Sec. 170(f)(8)(C).
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Respondent does not question whether petitioners made the
payments to the Apostolic Assembly during 2005. Nor does
respondent question the legitimacy of the Apostolic Assembly as a
valid section 170(c)(2) exempt organization. It is clear that
petitioners wrote 10 checks for tithes to the Apostolic Assembly.
Petitioners made donations for “special offerings”.7 Petitioners
participated in auxiliary groups and other types of church
activities. Further, the Apostolic Assembly gave petitioners a
letter dated January 22, 2008, which indicated that the church
received $6,552 from petitioners during 2005.
Despite the fact that petitioners made the contributions,
section 170(f)(8)(A) and section 1.170A-13(f)(1), Income Tax
Regs., require a contemporaneous written acknowledgment for
contributions of $250 or more in order for a charitable
contribution deduction to be allowed. The letter from the
Apostolic Assembly was not contemporaneous with the claimed
deduction. The letter was dated January 22, 2008, the date of
the Court’s trial session in El Paso, Texas, and was not received
7
Petitioner wife testified at trial that sometimes the
church asked from the pulpit that its members make special
offerings. She also testified that she wrote the checks quickly
and did not indicate in the memo the purpose of the check.
Petitioners paid to the church a total of $420.50 by eight checks
for special offerings, which respondent concedes on brief. These
eight checks did not need to be substantiated by contemporaneous
written acknowledgments pursuant to sec. 170(f)(8) because they
were all less than $250 and the amounts are therefore deductible
as charitable contributions.
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by the earlier of petitioners’ filing their income tax return or
the due date of April 17, 2006.8 See sec. 170(f)(8)(C); sec.
1.170A-13(f)(3), Income Tax Regs.
The letter from the Apostolic Assembly and the 10 canceled
checks indicating that they were for tithes are reliable.
However, they do not meet the substantiation requirements set
forth by the Internal Revenue Code or the Treasury regulations.
According to the Internal Revenue Code and the Treasury
regulations, the required acknowledgment of the charitable
contribution not only must include the amount contributed, but
also must state whether the charity provided any goods or
services in consideration for the contributions and describe and
set forth a good faith estimate of the value of those goods or
services. See sec. 170(f)(8)(B); Kendrix v. Commissioner, T.C.
Memo. 2006-9; sec. 1.170A-13(f)(2), Income Tax Regs. Because
petitioners failed to comply with section 170(f)(8) and section
1.170A-13(f), Income Tax Regs., we are constrained to hold that
they are entitled to deduct as charitable contributions only the
$420.50 respondent conceded.
In reaching our holdings herein, we have considered all
arguments made by the parties, and to the extent not mentioned
above, we find them to be irrelevant or without merit.
8
Apr. 15, 2006, was a Saturday, and therefore pursuant to
sec. 7503 petitioners had until Apr. 17, 2006, to file their
income tax return.
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To reflect the foregoing,
Decision will be entered
under Rule 155.