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The suit alleges that in marketing and operating this scheme, PIC falsely advises
house sellers and others that the sellers may claim charitable deductions on their
federal income tax returns for amounts they are contractually obligated to pay PIC.
According to the court filing, seller’s payments are not deductible charitable
contributions, because they do not proceed from “detached and disinterested
generosity,” but rather the payments are made in order to “facilitat[e] the sale of the
seller’s house.”
“Putting a stop to abuse of tax-exempt status is a high priority for the IRS and the
Justice Department’s Tax Division,” said Eileen J. O'Connor, Assistant Attorney
General for the Department of Justice's Tax Division. “The IRS will not tolerate
schemes that mislead honest home sellers and tarnish the image of charities,” said
IRS Commissioner Mark W. Everson.
This case is part of the IRS’s and Justice Department’s initiative to stop abusive tax
schemes. More information about the initiative is available at . More information
about the Justice Department’s Tax Division is available at .
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