Charitable Deduction Denied—Court Questions Credibility of Donor’s Proof！

Tax law permits taxpayers to deduct donations to qualified charities, but the donor must be able to prove the donation. For cash gifts of $250 or more, you’ll need a timely letter from the charity that states the amount, date, whether any goods or services were received in exchange and, if so, their value. One taxpayer claimed a charitable deduction of $43,258 for cash gifts made to a foundation that he created and where he was a board member. He presented a letter from the charity, but it lacked sufficient detail. Due to his close ties to the foundation, the U.S. Tax Court found the letter wasn’t credible and raised concerns about authenticity. The deduction was denied. (TC Memo 2025-87)