IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes is important for documenting donations of vehicles, boats, and planes to donee organizations.

Contents hide

1 What is Form 1098-C?

2 Who is required to file Form 1098-C?

3 What information is required?

4 How can Form 1098-C be filed and furnished?

5 Deadlines & Penalties

6 Conclusion

What is Form 1098-C?

It is used to document the donation of a vehicle, boat or airplane to a qualified charitable organization. It serves as proof of the donation and allows the donor to claim a tax deduction.

Screenshot of IRS Form 1098-C — *Image of Form 1098-C*

Who is required to file Form 1098-C?

A donee organization must file a form for each qualified vehicle with a claimed value greater than $500.

What information is required?

The Form 1098-C includes boxes for the following information:

Donee’s name, address, and contact information
Donor’s name and address
Date of contribution
Odometer mileage
Year, make, and model of donation
Donee’s and Donor’s TIN
VIN or other identification number
Date of sale
Gross proceeds from sale
Checkboxes for the following:
- Vehicle will not be transferred before completion of material improvements or significant intervening use
- Vehicle to be transferred to a needy individual for significantly below FMV
Description of material improvements or significant intervening use and duration of use
Checkbox for whether Donee provided goods and services in exchange for the vehicle described
- Value of goods and services
- Description of goods and services
Checkbox for a vehicle that has a claimed value of $500 or less

How can Form 1098-C be filed and furnished?

Form 1098-C may be paper filed if the filer has less than 10 forms to submit throughout the year. Otherwise, a paper filing is required.

Since January 1, 2024, filers with a total of more than 10 forms are required to e-file. Failing to file electronically could lead to penalties of up to $330 per return. However, this only applies to the number of forms over 10.

Form 1098-C cannot be furnished electronically at this time. A paper form must be furnished to the recipient.

Deadlines & Penalties

Traditionally, the deadlines for Form 1098-C, are as follows:

To the IRS via paper filing – February 28^th
To the IRS electronically – March 31^st
To the recipient (donor) – 30 days from date of sale or contribution

Failing to file Form 1098-C by the due date may result in penalties. These are as follows:

$60 per form if filed within 30 days of the deadline
$130 per form if filed after the due date, but before August 1
$330 per form if filed after August 1 or you do not file.

Intentional disregard of filing or furnishing requirements may lead to additional penalties:

Intentional disregard of filing requirements – up to $660 per form with no maximum penalty.
Intentional disregard of recipient statement furnishing requirements – up to $660 per form with no maximum penalty.

Conclusion

Completing IRS Form 1098-C accurately ensures that both donors and donees benefit from the donation while remaining tax compliant.

Be sure to stay on top of all of the deadlines throughout the year! Check them out here:

Deadlines

BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.