Dear Mr. Commissioner:
I am writing to you on two matters regarding the reforms of car donations included in tax legislationlast year. I commend you and your staff for working to provide guidance in an expedited matterearlier this year.
First, in discussions with charities, there is confusion about whether the legislation and IRS guidancerequires that charities must sell donated cars by the end of the year. For example, there is concernthat a car donated in late December 2005 must be sold before Jan. 1, 2006. It is my view that thisis not required by the legislation or IRS guidance - but I would strongly encourage the InternalRevenue Service to issue additional guidance and clarification so that there is no uncertainty fordonors and charities.
In addition, I have been informed that unfortunately there have been bad actors who are abusing theexceptions contained in the car donation legislation for donations made for resale to low-incomeindividuals. It is important for those charities that are playing by the rules that this mischief bestopped now.
Thank you for your time and consideration on this matter.
Cordially yours,
Charles E. Grassley United States Senator Chairman, Committee on Finance
Source: Ranking Member’s News
