26 U.S.C. § 6720 — Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes

A “donee organization” that section 170(f)(12)(A) requires to give a “donor” a “contemporaneous written acknowledgment” must pay a penalty for each knowingly false or fraudulent acknowledgment. It must also pay a penalty for each knowing failure to give the acknowledgment in the required manner, at the required time, and showing the information required under section 170(f)(12) or regulations issued under that section. This section does not define “donee organization,” “donor,” “contemporaneous written acknowledgment,” or “qualified vehicle.” (1) For an acknowledgment about a “qualified vehicle” to which section 170(f)(12)(A)(ii) applies, the penalty is the greater of (A) the highest tax rate specified in section 1 multiplied by the “sales price” stated on the acknowledgment, or (B) the “gross proceeds” from selling the vehicle. (2) For an acknowledgment about any other “qualified vehicle” to which section 170(f)(12) applies, the penalty is the greater of (A) the highest tax rate specified in section 1 multiplied by the vehicle’s “claimed value,” or (B) $5,000. This section does not define “sales price,” “gross proceeds,” or “claimed value.”