Why Your Charitable Receipts Need More Than Just a Signature

When was the last time you actually read the receipt from that donation drop-off? If you’re like most folks, you probably grabbed it and called it a day. Well, John Henry Besaw’s recent Tax Court case (TC Summary Opinion 2025-7) might make you think twice about that approach.

Besaw claimed $6,760 in noncash charitable contributions on his 2019 return, attaching Form 8283 with donee names and general descriptions – but crucially, no dates or values for the donated items. When the IRS disallowed the deduction for insufficient substantiation, Besaw scrambled. He provided receipts, but they were blank regarding specific item descriptions and values. He even submitted non-contemporaneous “reconstructed” documents detailing his donations. Special Trial Judge Leyden wasn’t impressed, noting that Treasury Regulation 1.170A-13 mandates receipts must include “a reasonably sufficient description of the donated property.” The Court ruled in favor of the IRS, upholding the disallowance of the entire deduction (though Besaw dodged accuracy-related penalties under IRC Section 6662(a) – small victories, right?).

How to Stay Out of Trouble

  1. Finish the receipt at the drop‑off counter. Make sure the charity describes each bag or box (e.g., “three men’s suits, kitchenware, two bicycles”).

  2. Match Form 8283 to the receipt. Include date, FMV, acquisition method, and cost / basis when required (thresholds: $250, $500, $5,000).

  3. File contemporaneously—don’t rebuild later. The Court accepted that Besaw donated the goods; it simply refused the write‑off because the paperwork was missing at filing time.

The takeaway? Good intentions aren’t enough – you need good documentation. Even modest non‑cash gifts demand meticulous documentation. A few extra seconds to have the charity note what you donated is far cheaper than losing the entire deduction at audit—Besaw learned that lesson for $6,760. For donations over $500, complete Form 8283 Section A with dates, descriptions, and values. Over $5,000? You’ll need a qualified appraisal and Section B. Our advice: snap photos of donated items, use apps to capture receipts immediately, and never accept blank documentation. After all, in the world of tax deductions, if you didn’t document it, it didn’t happen.

Questions about documenting your charitable contributions? Your Linkenheimer LLP team is here to help you navigate these waters – with all the proper paperwork in hand.