If you are make charitable gifts, you must play by the rules, and what may seem like substantial compliance won’t satisfy the Internal Revenue Service or the United States Tax Court. That’s the lesson from In re Durden, T.C. Memo.2012-140 (May 17, 2012).
Here are the basic facts. In 2007 David and Veronda Durden gave the Nevertheless Community Church $24,854 in a series of checks, each of which was for more than $250. The church sent an acknowledgment letter that covered every check, and sent it before the the Durdens filed their 2007 federal income tax return. Unfortunately, the church forgot to mention in the letter that the Durdens received no goods or services in return for the contributions.