SECTION 3. APPLICATION

OF § 170(f)(17) TO LUMP-SUM CONTRIBUTIONS MADE THROUGH THE CFC OR A SIMILAR PROGRAM

A deduction for a lump-sum contribution made in taxable years beginning after August 17, 2006, will not be allowed unless the recordkeeping requirements of § 170(f)(17) are met. In the case of a lump-sum contribution made through the CFC or a similar program, an organization described in § 170(c), or an organization described in 5 CFR 950.105 (a PCFO for purposes of the CFC) and acting in that capacity, that receives a payment made as a contribution may be treated as a donee described in § 170(c) for purposes of § 170(f)(17) (and not solely for purposes of § 170(f)(8)) even if the organization (pursuant to the donor’s instructions or otherwise) distributes the amount received to one or more organizations described in § 170(c). For purposes of § 170(f)(17), a written communication from the PCFO for purposes of the CFC (and acting in that capacity) or a similar organization, must include the name of the donee organization that is the ultimate recipient of the charitable contribution ( i.e ., the one or more organizations described in § 170(c) to which the PCFO for purposes of the CFC (or the similar organization) distributes the amount received).

The Internal Revenue Service and the Treasury Department expect to issue regulations under § 170 that will incorporate the recordkeeping requirements of § 170(f)(17). In light of the purpose of section 1217 of the PPA, the nexus between the PCFOs (or similar organizations) and actual donees will be reviewed. The anticipated regulations may require disclosure to each donor of the actual amount distributed to the ultimate recipient organizations through the CFC or the similar program and the date of that distribution. Taxpayers may rely on this notice to substantiate lump-sum contributions made through the CFC or a similar program in taxable years beginning after August 17, 2006, until those regulations are effective.

2008–4 I.R.B. 315 January 28, 2008