Of that years charitable contribution deduction

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of   that   year's   charitable   contribution   deduction   because   the   deduction   was   not  substantiated. Assume also that Mal indicates that, in the previous year, he contributed  $25,000 (instead of $24,785). How do these changes of fact affect your earlier decision? Statements on Standards for Tax Services (SSTS ) No. 3  states that a CPA "may in  good faith rely, without verification, on information furnished by the taxpayer or by  third parties" (Para. 2, reproduced in Appendix E of the text).   Thus, you may  accept Mal's information at face value.  His increase in AGI of over $30,000 may  explain his increase in charitable contributions of approximately $10,000.   In the  second scenario the provision from SSTS  No. 3  that a CPA "should make reasonable  inquiries   if   the   information   furnished   appears   to   be   incorrect,   incomplete,   or  inconsistent either on its face or on the basis of other facts known to a member"  would   be   pertinent.   Recently,   the   IRS   audited   Mal's   return,   and   Mal   lacked  substantiation for about 75 percent of the charitable contributions he had claimed.  (He may have made the contributions, but he could not prove that he did.)  Further,  the round amount ($25,000) reported by Mal suggests that Mal may be estimating  what he contributed.  You probably should request to see substantiation (canceled  checks, etc.) for the contribution(s) claimed.  For charitable contributions of $250 or  greater made after December 31, 1993, no deduction is allowed unless the donee  organization   substantiates   the   contribution   with   a   contemporaneous,   written  acknowledgement.  Mal needs to be made aware of this rule for his current year's  return.
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