|
|
Article: IRS SCRUTINIZES USED-CAR DONATIONS
- Article from:
- Herald-News (Joliet, IL)
- Article date:
- September 5, 1999
CopyrightCopyright (c) 1999 Herald-News. (Hide copyright information)
|
Following up on several prior warnings, the Internal Revenue Service is stepping up a probe into gifts of used cars to charities amid signs that taxpayers are claiming inflated deductions.
In an internal memorandum to field offices, IRS official Marcus Owens emphasizes concern about advertisements by charities or for-profit companies working under various kinds of contractual arrangements with charities.
Some ads promise "full Blue Book" value deductions, Owens says, even though the used cars are in "poor or inoperable condition."
Moreover, in several cases, charities are "entering into what amounts to a royalty arrangement with a for-profit company," Owens says.
In return for a fee ...