Rev. Rul. 74-199

Advice has been requested concerning the evidentiary requirements that must be met in determining, pursuant to Rev. Rul. 72-355, 1972-2 C.B. 532, whether a contribution was in fact made to a bona fide political committee for purposes of the $3,000 gift tax exclusion allowable under section 2503(b) of the Internal Revenue Code of 1954.

Rev. Rul. 72-355 discusses the circumstances under which political organizations will be recognized as separate donees for purposes of the exclusion. It also contains examples illustrating the circumstances under which political organizations will be either recognized as separate donees or treated as one organization for purposes of the exclusion.

The $3,000 exclusion is allowable only for contributions to bona fide committees or organizations where in fact, rather than form, they were the actual recipients of the contributions. Contributions will ordinarily be so treated only if the following evidentiary requirements are met:

(a) The contribution was actually made to the particular committee claimed to be the donee. If the contribution was made through an agent, the agent must have been that of the donor;

(b) The persons named as officers of the committee were actually its officers;

(c) The committee had a bank account and/or records evidencing the receipt of the contribution in question;

(d) The committee disbursed contributions for campaign purposes (including transfers to other organizations for such purposes); and

(e) The committee filed whatever Federal and state reports were required of it in respect to its activities, receipts or disbursements, and that the receipts and disbursements shown on such reports are consistent with the receipts and disbursements asserted by the contributor and the committee.

Separate $3,000 exclusions are allowed only with respect to separate bona fide committees which meet the separateness tests spelled out in Rev. Rul. 72-355 and its examples. The donor's exclusion with respect to a contribution or several contributions in a calendar year to any one donee is limited to the lesser of the value of the present interest given, or $3,000.

Rev. Rul. 72-355 is hereby amplified to include the above evidentiary requirements.