On August 6, the IRS issued proposed rules implementing changes to substantiation and reporting requirements for charitable contributions, initiated by the American Jobs Creation Act of 2004 and the Pension Protection Act of 2006. The proposed regulations implement recordkeeping requirements imposed by the PPA for all cash contributions, as well as the new definitions of a qualified appraisal and a qualified appraiser, which pertain to all noncash contributions. The rules also provide for substantiation requirements for noncash contributions imposed on a C corporation claiming a deduction of more than $5,000 and on any taxpayer claiming a deduction exceeding $500,000. The new definition of “qualified appraisal” under the proposed rules is an appraisal document prepared by a qualified appraiser in accordance with generally accepted appraisal standards, which are defined as the substance and principles of the Uniform Standards of Professional Appraisal Practice (USPAP). The proposed regulations do not permit any deduction for any contribution of cash, check, or other monetary gift unless the donor keeps a bank record or written communication from the donee as record of the contribution. The rules provide an exception from the substantiation requirements for unreimbursed expenses of less than $250 incurred due to the rendition of services to a charitable organization. Donors who claim deductions for noncash contributions of less than $250 are required to get a receipt from the donee or maintain reliable records. Donors who make contributions of $250 or more but less than $500 must obtain only a contemporaneous written acknowledgment. Donors claiming contributions of more than $500 but less than $5,000 must obtain a contemporaneous written acknowledgment and file a completed Section A of Form 8283 with the return on which the deduction is claimed. Taxpayers donating more than $5,000 must get a contemporaneous written acknowledgment and a qualified appraisal in most cases, as well as complete and file either Section A or Section B of Form 8283 with the return on which the deduction is claimed. Donors claiming contributions of more than $500,000 must attach a copy of the qualified appraisal to the return. Comments on the proposed rules are due by November 5.