PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 1079
(2) by striking ‘‘and’’ at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting a comma, and by inserting at the end the following: ‘‘(F) a description of the donee’s use of the property, and ‘‘(G) a statement indicating whether the use of the property was related to the purpose or function constituting the basis for the donee’s exemption under section 501. In any case in which the donee indicates that the use of applicable property (as defined in section 170(e)(7)(C)) was related to the purpose or function constituting the basis for the exemption of the donee under section 501 under subparagraph (G), the donee shall include with the return the certification described in section 170(e)(7)(D) if such certification is made under section 170(e)(7).’’. (c) PENALTY.— (1) IN GENERAL.—Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6720A the following new section: ‘‘SEC. 6720B. FRAUDULENT IDENTIFICATION OF EXEMPT USE PROPERTY.
26 USC 6720B.
‘‘In addition to any criminal penalty provided by law, any person who identifies applicable property (as defined in section 170(e)(7)(C)) as having a use which is related to a purpose or function constituting the basis for the donee’s exemption under section 501 and who knows that such property is not intended for such a use shall pay a penalty of $10,000.’’. (2) CLERICAL AMENDMENT.—The table of sections for part I of subchapter B of chapter 68 is amended by adding after the item relating to section 6720A the following new item: ‘‘Sec. 6720B. Fraudulent identification of exempt use property.’’.
(d) EFFECTIVE DATE.— (1) RECAPTURE.—The amendments made by subsection (a) shall apply to contributions after September 1, 2006. (2) REPORTING.—The amendments made by subsection (b) shall apply to returns filed after September 1, 2006. (3) PENALTY.—The amendments made by subsection (c) shall apply to identifications made after the date of the enactment of this Act.
26 USC 170 note. 26 USC 6050L. 26 USC 6720B note.
SEC. 1216. LIMITATION OF DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF CLOTHING AND HOUSEHOLD ITEMS.
(a) IN GENERAL.—Subsection (f) of section 170, as amended by this Act, is amended by adding at the end the following new paragraph: ‘‘(16) CONTRIBUTIONS OF CLOTHING AND HOUSEHOLD ITEMS.— ‘‘(A) IN GENERAL.—In the case of an individual, partnership, or corporation, no deduction shall be allowed under subsection (a) for any contribution of clothing or a household item unless such clothing or household item is in good used condition or better. ‘‘(B) ITEMS OF MINIMAL VALUE.—Notwithstanding subparagraph (A), the Secretary may by regulation deny a deduction under subsection (a) for any contribution of
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