My 2009 & 2010 tax return
was audited for cash and non-cash contributions. We furnished a statement from our church and the Salvation Army. With our church contribution statement we supported the donations
with our bank statements. Because the contributions were cash (as the result of identity theft) we furnished the bank statements to show the cash withdrawals used to make the donations. None of the cash donations reported were more than $250 which did not require us
to furnish our canceled checks or credit
card statements. There was a weekly breakdown of the contributions and none exceeded $250.
For our non-cash we furnished a Salvation Army receipt of donation, a compiled list of donated items, the value assigned, and a Salvation Army value guide which gave the appraisal value of the donated items.
The auditor did not accept any of our substantiating documents. We appealed it to the auditors supervisor who said he agreed with the original auditors assessment
without providing us an explanation. This was in January. We have just received a Notice of Deficiency from the Commissioner on July 20th. It is now our understanding that we could have petitioned for an appeals hearing on our audit
. We were not provided any information from the examination office to our rights.
It is not our desire at this point to file a petition with US Tax Court. We want to know is there a process to insure we have exhausted all of our rights prior to appealing this decision by the original examiner and his supervisor.