n-08-90.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Charitable Contributions of Inventory Property Under § 170(e)(3)

Notice 2008-90

SECTION 1. OVERVIEW
This notice announces that the Internal Revenue Service (Service) and the
Treasury Department are studying the computation of the deductible amount and
adjustment to cost of goods sold for charitable contributions of inventory property that
constitute qualified contributions as defined in § 170(e)(3)(A) of the Internal Revenue
Code.
The Service and the Treasury Department are aware that some taxpayers
making qualified contributions may, because of the income limitation of § 170(b)(2),
prefer to apply the provisions of § 170(e)(1) and § 1.170A-1(c) of the Income Tax
Regulations rather than the provisions of § 170(e)(3) and § 1.170A-4A(c).
SECTION 2. GUIDANCE UNDER SECTION 170(e)
For a particular qualified contribution of inventory property under § 170(e)(3) that
otherwise satisfies the requirements of § 170 and the relevant regulations, the Service
will not challenge a taxpayer’s computation of the deductible amount and the required
adjustment to cost of goods sold under either (1) § 170(e)(3) and § 1.170A-4A(c), or (2)
§ 170(e)(1) and § 1.170A-1(c).
SECTION 3. RELIANCE ON NOTICE

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Taxpayers may rely on this notice unless and until further guidance is issued.
SECTION 4. COMMENTS REQUESTED
The Service and the Treasury Department request comments regarding the
computation of the deductible amount and the required adjustment to cost of goods sold
for charitable contributions of inventory property under § 170(e)(3) as well as any other
issues related to inventory contributions that should be addressed in future guidance.
Comments should be submitted in writing on or before January 26, 2009, and
should include a reference to Notice 2008-90. Send submissions to: CC:PA:LPD:PR
(Notice 2008-90), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044. Submissions may be hand delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (Notice 2008-90),
Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington,
DC. Alternatively, comments may be submitted electronically directly to the Service via
the following e-mail address: Notice.comments@irscounsel.treas.gov
. Please include
“Notice 2008-90” in the subject line of any electronic communication. All materials
submitted will be available for public inspection and copying.
SECTION 5. DRAFTING INFORMATION
The principal author of this notice is Susan J. Kassell of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding this notice
contact Ms. Kassell at (202) 622-5020 (not a toll free call).