Instructions For Form 1098-C - Contributions Of Motor Vehicles, Boats, And Airplanes - 2015
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22015
Department of the Treasury
Internal Revenue Service
Instructions for Form 1098-C
Contributions of Motor Vehicles, Boats, and Airplanes
Section references are to the Internal Revenue Code unless otherwise
Do not file Form 1098-C for a contribution of a qualified vehicle
noted.
with a claimed value of $500 or less. However, you may use it
!
as the contemporaneous written acknowledgment under
Future Developments
CAUTION
section 170(f)(8) by providing the donor with Copy C only. If you use
Copy C as the acknowledgment, you must check box 7. In addition, do
For the latest information about developments related to Form 1098-C
not complete boxes 4a through 5c or enter the donor's identification
and its instructions, such as legislation enacted after they were
number on the form. You may, but are not required to, enter the donee's
published, go to
federal identification number on the form.
What's New
Section 6720 Penalties
Truncating donor's identification number on written acknowledg-
Section 6720 imposes penalties on any donee organization that is
ments. Pursuant to Treasury Regulations section 301.6109-4, all filers
required under section 170(f)(12) to furnish an acknowledgment to a
of this form may truncate a donor’s identification number (social security
donor if the donee organization knowingly:
number (SSN), individual taxpayer identification number (ITIN), adoption
Furnishes a false or fraudulent acknowledgment, or
taxpayer identification number (ATIN), or employer identification number
Fails to furnish an acknowledgment in the manner, at the time, and
(EIN)) on written acknowledgments. Truncation is not allowed on any
showing the information required by section 170(f)(12).
documents the filer files with the IRS. A donee organization’s
identification number may not be truncated on any form. See part J in the
Other penalties may apply. See part O in the 2015 General
2015 General Instructions for Certain Information Returns.
Instructions for Certain Information Returns.
!
Reminder
CAUTION
An acknowledgment containing a certification described in box 5a or
In addition to these specific instructions, you should also use the 2015
5b will be presumed to be false or fraudulent if the qualified vehicle is
General Instructions for Certain Information Returns. Those general
sold to a buyer other than a needy individual (as explained in the
instructions include information about the following topics.
instructions for box 5b) without a significant intervening use or material
Who must file (nominee/middleman).
improvement (as explained in the instructions for box 5a) within 6
When and where to file.
months of the date of the contribution. If a charity sells a donated vehicle
Electronic reporting requirements.
at auction, the IRS will not accept as substantiation an acknowledgment
Corrected and void returns.
from the charity stating the vehicle is to be transferred to a needy
Statements to recipients.
individual for significantly below fair market value. Vehicles sold at
Taxpayer identification numbers.
auction are not sold at prices significantly below fair market value, and
Backup withholding.
the IRS will not treat vehicles sold at auction as qualifying for this
Penalties.
exception.
Other general topics.
The penalty for an acknowledgment relating to a qualified vehicle for
which box 4a must be checked is the larger of:
You can get the general instructions at
or by
The gross proceeds from the sale, or
calling 1-800-TAX-FORM (1-800-829-3676).
The sales price stated in the acknowledgment multiplied by 39.6%.
Specific Instructions
The penalty for an acknowledgment relating to a qualified vehicle for
which box 5a or 5b must be checked is the larger of:
$5,000, or
Who Must File
The claimed value of the vehicle multiplied by 39.6%.
A donee organization must file a separate Form 1098-C, Contributions of
Donor's Identification Number
Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution
of a qualified vehicle that has a claimed value of more than $500. A
See part J of the 2015 General Instructions for Certain Information
qualified vehicle is any motor vehicle manufactured primarily for use on
Returns for details on requesting the donor's identification number. If the
public streets, roads, and highways; a boat; or an airplane. However,
donor does not provide an identification number, you must check box 7
property held by the donor primarily for sale to customers, such as
because the acknowledgment will not meet the requirements of section
inventory of a car dealer, is not a qualified vehicle.
170(f)(12) and the donor will not be allowed to claim a deduction of more
than $500 for the qualified vehicle.
Contemporaneous Written Acknowledgment
Box 1. Date of Contribution
If a donor contributes a qualified vehicle to you with a claimed value of
more than $500, you must furnish a contemporaneous written
Enter the date you received the motor vehicle, boat,
acknowledgment of the contribution to the donor under section 170(f)
or airplane from the donor.
(12) containing the same information shown on Form 1098-C.
Otherwise, the donor cannot claim a deduction of more than $500 for
Boxes 2a, 2b, 2c, and 2d. Odometer Mileage,
that vehicle. Copy B of Form 1098-C may be used for this purpose. An
Year, Make, and Model of Vehicle
acknowledgment is considered contemporaneous if it is furnished to the
donor no later than 30 days after the:
Enter the appropriate information in each box. Enter mileage only for
Date of the sale, if you are required to check box 4a, or
motor vehicles in box 2a. The following table shows three examples.
Date of the contribution, if you are required to check box 5a or 5b.
Provide the donor with Copies B and C of Form 1098-C or your own
acknowledgment that contains the required information. For
contributions for which you completed an acknowledgment in calendar
year 2015, file Copy A by February 29, 2016 (March 31, 2016, if filed
electronically). See the 2015 General Instructions for Certain Information
Returns for more information on how to file.
Sep 29, 2014
Cat. No. 39750N
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