[acb-hsp] [leadership] Dear Colleague Letter for Vehicle Donation Bill

[peter altschul]

---- Original Message ------
From: "Eric Bridges" <ebridges at acb.org
Subject: [leadership] Dear Colleague Letter for Vehicle Donation 
Bill
Date sent: Mon, 14 Mar 2011 12:57:55 -0400

Since the introduction of H.R.  860 last week by Representatives 
Larson
(D-CT) and Reichert (R-WA) a Dear Colleague letter has been 
produced in
order to highlight the need for the legislation to gain support 
from offices
on Capitol Hill.  Please share the letter below with your members 
of
Congress.  At the end of the letter contact information is 
provided for your
member to sign on as a cosponsor.



Eric



Congress of the United States

Washington, DC



March 9, 2011



RESTORE BALANCE TO TAX TREATMENT OF CAR DONATIONS



Bipartisan Bill Attracted Over 200 Cospon5ors Last Session



Dear Colleague:



We urge you to join us in supporting legislation to encourage 
charitable
vehicle donations, which provide a substantial source of service
organizations' annual operating budgets.  Six years ago, Congress 
enacted
changes in the tax code related to charitable donation of 
vehicles.  While
those changes were focused on addressing abuses within the 
system, they
inadvertently created a serious new problem causing car donations 
to plummet
and thousands of charities to reduce services across the country.  
As
bipartisan members of the tax-writing House Ways and Means 
Committee, we
have introduced HR 860 to restore balance to these rules.



Until 2005, a taxpayer could deduct the fair-market value of 
vehicles
donated to charity if that amount was less than $5,000.  
Otherwise, an
appraisal was required.  Unfortunately, some taxpayers were 
gaming the system
and IRS oversight was insufficient to detect or police these 
abuses.  In
response, Congress limited deductions for vehicles worth over 
$500 to the
amount for which the charity resold the donated vehicle, 
regardless of
appraised value.



For potential donors, this created uncertainty and confusion.  To 
donate a
vehicle in good condition, a donor had to hand over his or her 
car, keys,
and title without any idea - for weeks or even months - how much 
it may
eventually sell for or how it might affect his or her tax 
liability.



In the first year after the law changed, the IRS reported a 67 
percent
decline in the number of vehicles donated to charities and an 80 
percent
decline in their value.  This contradicted reassurances during 
the 2004
debate that the changes would not adversely affect charitable 
revenues.



HR 860 would allow tax deductions based on fair market value up 
to $2,500
and require an appraisal over that threshold, while preserving 
all of the
necessary tracking and enforcement safeguards enacted in 2004.  
This would
protect against abuse without scaring away donations altogether.



Last session, this legislation attracted over 200 bipartisan 
cosponsors.
It's a modest bill that would help stock food bank shelves, 
advance medical
research and provide shelter to the homeless.  For details or to 
cosponsor,
please call Lee Slater (Larson) at 225-2265 or Jason Edgar 
(Reichert) at
225-7761.



Sincerely,



John B.  Larson



Dave Reichert















Eric Bridges

Director of Advocacy and Governmental Affairs

American Council of the Blind

2200 Wilson Boulevard, Suite 650

Arlington, VA 22201

ebridges at acb.org

www.acb.org