§6720 Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes

Summary

Charities that get donated cars, boats, or planes must give donors a written receipt. If a charity knowingly gives a false receipt or knowingly fails to give the required receipt correctly or on time, it must pay a penalty for each false or missing receipt. For vehicles covered by 170(f)(12)(A)(ii), the penalty is the larger of (a) the highest tax rate in section 1 times the sales price on the receipt or (b) the gross proceeds from the sale. For other qualified vehicles, the penalty is the larger of (a) the highest tax rate in section 1 times the claimed value or (b) $5,000.