A donee organization must file a separate Form 1098-C
with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500.
TIGTA recommended matching copies of Form 1098-C
submitted with taxpayers' returns with its records and that the IRS develop a process to identify donees that fail to file the form.
03, Form 1098-C, Contribution of Motor Vehicles, Boats, and Airplanes, is to be used for reporting information to the IRS, and a copy of Form 1098-C may also be used to provide written acknowledgement to the donor.
Section 2 states that Form 1098-C will be revised for the technical amendment to Section 884 of the AJCA contained in the Gulf Opportunity Zone Act of 2005 (GO Zone Act).
Copy B of Form 1098-C can be sent to the donor as the contemporaneous written acknowledgment of the donation.
6720 prescribes potentially severe penalties for fraudulent acknowledgments of vehicle donations or for failing to provide a Form 1098-C or other proper acknowledgment to the donor and to the IRS where required.
The IRS has now issued Form 1098-C
for such substantiation, for affected contributions made after 2004.