SECTION 2. BACKGROUND — Internal Revenue Bulletin 2006-4

Section 884 of the American Jobs Creation Act of 2004, Pub. L. No. 108–357, 118 Stat. 1418 (AJCA), added §§ 170(f)(12) and 6720 to the Internal Revenue Code effective for contributions of qualified vehicles made after December 31, 2004. Section 170(f)(12)(A) disallows a deduction under § 170(a) for a contribution of a qualified vehicle the claimed value of which is more than $500 unless the donor substantiates the contribution by a contemporaneous written acknowledgment that meets the requirements of § 170(f)(12)(B).

Section 170(f)(12)(D) requires a donee organization to provide the Secretary of the

Treasury or his delegate with the information contained in the acknowledgment furnished to the donor.

The Internal Revenue Service has provided Form 1098–C for reporting to the Service the information required to be reported under § 170(f)(12)(D). Form 1098–C can be viewed online at http://www.irs.gov/pub/irs-pdf/f1098c.pdf .

Form 1098–C will be revised to take account of the Gulf Opportunity Zone Act of 2005, Pub. L. No. 109–135, 119 Stat. 2577 (GO Zone Act), which was enacted on December 21, 2005. Section 403(gg) of the GO Zone Act contains a technical amendment to § 884 of the AJCA. The technical amendment added clauses (v) and (vi) to § 170(f)(12)(B). Section 170(f)(12)(B)(v) requires the acknowledgment to include information concerning whether the donee organization provided any goods or services in consideration, in whole or in part, for the qualified vehicle. In addition, § 170(f)(12)(B)(vi) requires the acknowledgment to contain a description and good faith estimate of the value of any goods or services referred to in clause (v) or, if such goods or services consist solely of intangible religious benefits (as defined in § 170(f)(8)(B)), a statement to that effect. Notwithstanding these reporting requirements, as set forth below in Section 5, donees may continue to use the current version of Form 1098–C to satisfy the requirements for a contemporaneous written acknowledgment until a new form is provided.