§6720 Fraudulent Acknowledgments with Respect to Donations of Motor Vehicles, Boats, and Airplanes

Summary

Charities that take donations of cars, boats, or airplanes must give the donor a written acknowledgment of the gift. If a charity knowingly gives a false or fraudulent acknowledgment, or knowingly fails to provide one on time with the required information, it owes a penalty for each violation. When the vehicle was sold by the charity, the penalty is the greater of the sales price stated on the acknowledgment multiplied by the highest individual income tax rate, or the gross proceeds from the sale. For other donated vehicles, it is the greater of the claimed value multiplied by that highest tax rate, or $5,000.