Whenever a non-profit organization receives a donation of a motor vehicle, boat, and/or airplane that has a value of more than $500, they are required to file a Form 1098-C with the IRS. These forms must be filed on an official printed version that is scan-able by the IRS. You can obtain these forms by calling the IRS or going to their website. The nonprofit organization is required to provide the donor with written acknowledgment of the contribution within 30 days of the transaction. The official version of the form 1098-C includes two carbon copies (copy B of Form 1098-C and copy C of Form 1098-C) which can be used to give to the donors. The donor will also need this form to report the deduction on their personal taxes. You have until the following February after the calendar year in which you received the contribution to file the 1098-C form with the IRS. (I.e. if you received the donation in the calendar year 2014, you have until February 2015 to file with the IRS). All Forms 1098-C must be submitted with a Form 1096 transmittal form. For more in depth details of instructions, visit www.irs.gov.
By Michelle Housman