[oregon-l] Letter to Send to our Congressmen regarding Vehicle Donation Bill
kseth.acbo at gmail.com
Tue Mar 15 00:10:47 GMT 2011
The following is a letter to send to Oregon's Congressional delegation to
urge them to co-sponsor this legislation. Oregon was one of the first
state affiliates to utilize the vehicle Donation program in Acb. Please
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.
Congress of the United States
March 9, 2011
RESTORE BALANCE TO TAX TREATMENT OF CAR DONATIONS
Bipartisan Bill Attracted Over 200 Cospon5ors Last Session
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
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
John B. Larson
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