Nancy McLaughlin, Professor of Law at the University of Utah S.J. Quinney College of Law, was recently quoted in Bloomberg Bureau of National Affairs article regarding a case that underscores the importance of correctly documenting gift letters.
In the article, which deals with a U.S. Tax Court opinion upholding the IRS’s disallowance of $4.5 million of charitable donation deductions, McLaughlin said, “It looks like from this case, if a donee makes an error or comes up with an incorrect value for something, or leaves something out, it could be deemed not a valid gift letter and the entire deduction will be denied. That's a pretty stiff penalty.”
To read the entire Bloomberg article, click here.