Instructions For Form 1098-C - Contributions Of Motor Vehicles, Boats, And Airplanes - 2017


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
General Instructions for Certain Information Returns for information on
how to file.
Future Developments
Do not file Form 1098-C for a contribution of a qualified vehicle
with a claimed value of $500 or less. However, you may use it as
For the latest information about developments related to Form 1098-C
the contemporaneous written acknowledgment under section
and its instructions, such as legislation enacted after they were
170(f)(8) by providing the donor with Copy C only. If you use Copy C as
published, go to
the acknowledgment, you must check box 7. In addition, do not
complete boxes 4a through 5c or enter the donor's TIN on the form. You
What's New
may, but are not required to, enter the donee's federal TIN on the form.
Penalty rate change. The multiplier for computing a section 6720
Section 6720 Penalties
penalty has been reduced from 39.6% (0.396) to 37% (0.37).
Section 6720 imposes penalties on any donee organization that is
Online fillable form. Due to the very low volume of paper Forms
required under section 170(f)(12) to furnish an acknowledgment to a
1098-C received and processed by the IRS each year, these forms have
donor if the donee organization knowingly:
been converted to an online fillable format. You may fill out the forms,
Furnishes a false or fraudulent acknowledgment; or
found online at, and send Copy B to the donor. For
Fails to furnish an acknowledgment in the manner, at the time, and
filing with the IRS, follow your usual procedures for filing electronically if
showing the information required by section 170(f)(12).
you are filing 250 or more forms. If you are filing these forms on paper
due to a low volume of recipients, for these forms only, you may send
Other penalties may apply. See part O in the 2018 General
in the black-and-white Copy A with Forms 1096 that you print from the
Instructions for Certain Information Returns.
IRS website.
An acknowledgment containing a certification described in box 5a or
5b will be presumed to be false or fraudulent if the qualified vehicle is
In addition to these specific instructions, you should also use the 2018
sold to a buyer other than a needy individual (as explained in the
General Instructions for Certain Information
Returns. Those general
instructions for box 5b) without a significant intervening use or material
instructions include information about the following topics.
improvement (as explained in the instructions for box 5a) within 6
Who must file (nominee/middleman).
months of the date of the contribution. If a charity sells a donated vehicle
When and where to file.
at auction, the IRS will not accept as substantiation an acknowledgment
Electronic reporting requirements.
from the charity stating the vehicle is to be transferred to a needy
Corrected and void returns.
individual for significantly below fair market value (FMV). Vehicles sold at
Statements to recipients.
auction are not sold at prices significantly below FMV, and the IRS will
Taxpayer identification numbers (TINs).
not treat vehicles sold at auction as qualifying for this exception.
Backup withholding.
The penalty for an acknowledgment relating to a qualified vehicle for
Other general topics.
which box 4a must be checked is the larger of:
The gross proceeds from the sale, or
You can get the general instructions at
General Instructions for
The sales price stated in the acknowledgment multiplied by 37%
Certain Information Returns
The penalty for an acknowledgment relating to a qualified vehicle for
Specific Instructions
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 37% (0.37).
A donee organization must file a separate Form 1098-C, Contributions of
Donor's TIN
Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution
See part J of the 2018 General Instructions for Certain Information
of a qualified vehicle that has a claimed value of more than $500. A
Returns for details on requesting the donor's TIN. If the donor does not
qualified vehicle is any motor vehicle manufactured primarily for use on
provide a TIN, you must check box 7 because the acknowledgment will
public streets, roads, and highways; a boat; or an airplane. However,
not meet the requirements of section 170(f)(12) and the donor will not be
property held by the donor primarily for sale to customers, such as
allowed to claim a deduction of more than $500 for the qualified vehicle.
inventory of a car dealer, is not a qualified vehicle.
Truncating donor's TIN on acknowledgements. Pursuant to
Contemporaneous Written Acknowledgment
Treasury Regulations section 301.6109-4, all filers of this form may
truncate a donor’s TIN (social security number (SSN), individual
If a donor contributes a qualified vehicle to you with a claimed value of
taxpayer identification number (ITIN), adoption taxpayer identification
more than $500, you must furnish a contemporaneous written
number (ATIN), or employer identification number (EIN)) on written
acknowledgment of the contribution to the donor under section 170(f)
acknowledgements. Truncation is not allowed on any documents the filer
(12) containing the same information shown on Form 1098-C.
files with the IRS. A filer’s TIN may not be truncated on any form. See
Otherwise, the donor cannot claim a deduction of more than $500 for
part J in the 2018 General Instructions for Certain Information Returns.
that vehicle. Copy B of Form 1098-C may be used for this purpose. An
acknowledgment is considered contemporaneous if it is furnished to the
Box 1. Date of Contribution
donor no later than 30 days after the:
Date of the sale, if you are required to check box 4a; or
Enter the date you received the motor vehicle, boat,
Date of the contribution, if you are required to check box 5a or 5b.
or airplane from the donor.
Provide the donor with Copies B and C of Form 1098-C or your own
acknowledgment that contains the required information. See the 2018
Jan 02, 2018
Cat. No. 39750N


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