John Besaw donated $6,760 worth of goods to charity and followed what he thought were all the rules. The IRS didn’t question whether his donations were legitimate; they denied the deduction because of a documentation technicality that most taxpayers have never heard of.

In Besaw,1 the Tax Court delivered a harsh reminder: documentation rules for charitable deductions are rigid and unforgiving. Congress and the IRS have created rules so detailed and inflexible that even very generous donors can lose their deductions over a technicality.

And the mistake that cost Besaw his deduction? It’s probably lurking in your tax files right now. ... Log in to view full article.