Dear Mr. Small:
The Finance Committee has been conducting an ongoing review of in-kind donations tocharities. The findings of this review have been troubling, indicating that too many taxpayers aretaking highly inflated values for in-kind donations - be it cars, land, intellectual property or othertypes of in-kind property.
The Finance Committee has recently been made aware of questions being raised as to thevalue of a donation the Smithsonian received of four Stradivari musical instruments in 1998. Iwould appreciate the Smithsonian providing all material in its possession or control regarding thisdonation and particularly a copy of the IRS Form 8283 (“Noncash Charitable Contributions") for thisdonation. In addition, please provide me a copy of all Form 8283's for all donations over $10 milliondollars received by the Smithsonian since Jan. 1, 2001.
This is not the first time this type of question has been raised regarding the Smithsonian.
In 1983 the IRS raised serious concerns about gems donated to the Smithsonian that were beingappraised for tax donation purposes at five times purchase price. What steps did the Smithsoniantake in response to this matter to prevent a recurrence?
By comparison, following the investigation by the Finance Committee, the NatureConservancy (TNC) has adopted several reforms regarding acceptance of in-kind donations. Thiswas in response to concerns about the validity of appraisals for tax deductions made by donors ofland and easement donations. Please describe what, if any, steps the Smithsonian takes before itsigns a Form 8283 to ensure that the taxpayer’s claimed deduction is accurate.
Thank you for your time and assistance. I would ask for a response in 30 days.
Cordially yours,
Charles E. Grassley Chairman
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April 28, 2004
The Honorable Mark Everson Commissioner Internal Revenue Service Washington, D.C.
Dear Mr. Commissioner:
I am writing to you regarding an issue of great concern to me - the Internal Revenue Service(IRS) and individuals who blow the whistle on tax fraud.
I have seen first-hand the enormous benefits that the False Claim Act has provided to thefederal government in its fight against fraud by health and defense contractors. The problems in taxfraud are even greater. It is for this reason that I have included legislation in the JOBS bill thatexpands and improves upon the IRS’ current limited program to reward whistleblowers. I amconfident that these changes will bring far-ranging benefits to enforcement and compliance with thetax laws.
In that light, I am requesting that the IRS please provide my office all details regarding theApplication for Reward for Original Information (Form 211) that was filed by Mr. Neil Fitzgeraldregarding claims he has raised regarding certain charitable donations.
Pursuant to IRC section 6103(f)(4), I hereby authorize Dean Zerbe of my staff to review thisinformation. Thank you for your time and assistance. I would ask for this information in thirty days.
Cordially,
Charles E. Grassley Chairman
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Source: Ranking Member’s News
