Form 1098-C Due Dates

What is IRS form 1098-C?

Form 1098-C Contributions of Motor Vehicles, Boats, and Airplanes are used by donee organizations to report the receipt of qualified vehicle donations to the IRS and the donor. This form provides critical details about the donated vehicle, including its fair market value, whether it was sold or used for charitable purposes, and any applicable tax benefits for the donor.

Filing Deadlines for Form 1098-C

Penalties:

The IRS imposes penalties for furnishing false or fraudulent acknowledgments, failing to file correct information returns, and failing to furnish correct payee statements. Below are the penalty details:

Fraudulent Acknowledgments (Section 6720):

If a donee organization knowingly furnishes a false or fraudulent Form 1098-C or fails to provide the acknowledgment within 30 days, penalties apply as follows:

• For a qualified vehicle where Box 4a is checked:
• The penalty is the greater of:
• The complete sales proceeds from the vehicle, or
• The sales price stated in the acknowledgment multiplied by 39.6% (0.396).
• For a qualified vehicle where Box 5a or 5b is checked:
• The penalty is the greater of:
• $5,000, or
• The claimed value of the vehicle multiplied by 39.6% (0.396).

Failure to File or Furnish Correct Information (Sections 6721 & 6722)

• A penalty applies if Form 1098-C is not filed with the IRS or furnished to the donor by the required due date.
• The penalty amount varies based on the extent of noncompliance and whether the failure was due to intentional disregard.