SECTION 3. INFORMATION

REPORTING TO THE INTERNAL REVENUE SERVICE

If a donee organization receives a contribution of a qualified vehicle with a claimed value of more than $500 after December 31, 2004, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. The donee organization may use a completed Form 1098–C for the contemporaneous written acknowledgment. See section 3.03 of Notice 2005–44, 2005–25 I.R.B. 1287, for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline

for furnishing the acknowledgment to the donor.

Any donee organization that provides a contemporaneous written acknowledgment to a donor under this section is required to report to the Service the information contained in the acknowledgment. The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor.

The donee organization must file the report on Copy A of the official Form 1098–C. The official paper Form 1098–C can be ordered online at Forms and Publications by U.S. Mail (http://www.irs.gov/formspubs/ page/0,,id=10768,00.html) or by calling 1–800–829–3676. Instructions for Form 1098–C are available at http://www.irs.gov/pub/irs-pdf/i1098c.pdf . General instructions on filing information returns and reporting on paper or electronic/magnetic media, including instructions on where to file Form 1098–C, can be found in the General Instructions for Forms 1099, 1098, 5498, and W–2G, which are available at http://www.irs.gov/pub/irs- pdf/i1099gi.pdf .

A donee organization that files Form 1098–C on paper should send it with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to the Internal Revenue Service Center, Ogden, UT 84201–0027. A donee organization that is required to file 250 or more Forms 1098–C during the calendar year must file them electronically or magnetically. Specifications for Filing Forms 1098, 1099, 5498, and W–2G Electronically or Magnetically can be found in Publication 1220 at http://www.irs.gov/pub/irs-pdf/p1220.pdf .

Example. On December 31, 2006, D contributes a qualified vehicle to O, an organization that is described in § 170(c). On January 15, 2007, O sells the qualified vehicle in an arm’s length transaction to an unrelated party without any significant intervening use or material improvement by O. On February 14, 2007, O provides D an acknowledgment that meets the requirements of a contemporaneous written acknowledgment under § 170(f)(12). D properly claims the deduction allowable under § 170(f)(12) in taxable year 2006 by attaching the acknowledgment to Form 1040, U.S. Individual Income Tax Return, that D files by April 15, 2007. To meet its reporting requirements

2006–4 I.R.B. 347 January 23, 2006

tions. The estimated number of donee organizations is 4,300.

The estimated annual frequency of responses (used for reporting requirements only) is annually.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as required by § 6103.