We filed jointly and sent Virginia our donation lists, but our charitable deductions were still denied. Why?

Plain-English summary

This is a light-touch companion page. P.D. 25-96 is one of a series of materially identical June 30, 2025 Virginia determinations on the same fact pattern — see P.D. 25-95 for the full explanation and guidance.

A married couple claimed charitable-contribution itemized deductions for 2020, 2021, and 2022. On audit the Department asked for proof, and their documentation didn't hold up: it found that at least 14 of their donation lists were exact copies of lists submitted by multiple other taxpayers, and their application for correction was identical or nearly identical to those filed by those other taxpayers. That mass-produced paperwork is not credible evidence of the couple's own gifts, and because a Department assessment is prima facie correct (§ 58.1-205) — leaving the burden on the taxpayers — the deductions were disallowed and the assessments upheld, with interest due within 30 days of the updated bills.

The governing rules are the same as in P.D. 25-95: Virginia itemized deductions follow the federal ones (§ 58.1-322.03, § 58.1-301), charitable gifts must be substantiated with genuine receipts, cancelled checks, and — for any gift of $250 or more — a contemporaneous written acknowledgment from the charity (Treas. Reg. § 1.170A-13), and taxpayers must keep adequate records (Treas. Reg. § 1.6001-1(a); § 58.1-310).

What this means for you

Substantiate charitable deductions with your own genuine records, not shared or templated donation lists. The Department compares documentation across filers and rejects duplicated lists and boilerplate appeals; when it does, the assessment stands and the burden is on you to prove it wrong. See P.D. 25-95 for the fuller discussion.

Common questions

Q: We filed jointly and sent in our donation lists. Why were the deductions denied?
A: The lists were found to be exact copies shared among many taxpayers, so they weren't credible proof of your own gifts. You need genuine receipts, bank/cancelled-check records, and a written acknowledgment from the charity for any gift of $250 or more.

Q: Is this different from P.D. 25-95, 25-97, or 25-99?
A: It's a separate taxpayers' appeal decided on the same facts and reasoning — copied donation lists for 2020–2022. P.D. 25-95 is the full write-up; this is a short companion.

Citations and references

Statutes and regulations:

• Va. Code § 58.1-1821 — application to the Tax Commissioner to correct an assessment
• Va. Code § 58.1-301, § 58.1-322.03 — Virginia itemized deductions follow the federal ones
• Va. Code § 58.1-219, § 58.1-310 — the Department may adjust IRC-inconsistent deductions and require records
• Va. Code § 58.1-205 — a Department assessment is prima facie correct; burden on the taxpayer
• Treas. Reg. § 1.170A-13 — substantiation for charitable contributions ($250+ written acknowledgment; property-gift rules)
• Treas. Reg. § 1.6001-1(a) — adequate records required

Prior public documents (described here, not linked): P.D. 19-78 and P.D. 23-24 (charitable-contribution substantiation). Companion rulings in this series: P.D. 25-95 (full write-up), 25-97, and 25-99.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 25-96

Original ruling text

June 30, 2025

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessments issued to * (the “Taxpayers”) for the taxable years ended December 31, 2020, 2021, and 2022.

FACTS

The Taxpayers filed Virginia resident income tax returns for the taxable years at issue, claiming charitable contributions as itemized deductions reportable on federal Schedule A. Under audit, the Department requested documentation to support the deductions. The Taxpayers submitted some documentation, but the auditor determined that it was insufficient to support all of the claimed deductions and issued assessments accordingly. The Taxpayers submitted an application for correction, asserting that they provided sufficient documentation to support the deductions.

DETERMINATION

Conformity

Virginia Code § 58.1-301 provides, with certain exceptions, that terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia . For individual income tax purposes, Virginia conforms to federal law, in that it starts the computation of Virginia taxable income with federal adjusted gross income (FAGI). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia .

Generally, the Department relies on the accuracy of information and computations reflected on the federal income tax return when reviewing Virginia individual income tax returns. If the information provided on the federal return appears reasonable, then, typically, the Department does not look behind those computations. The Department, however, may examine and adjust the FAGI and itemized deductions where there is clear evidence that the amounts reported on the federal or Virginia income tax return are inconsistent with the IRC. See Virginia Code § 58.1-219 and § 58.1-310.

Itemized Deductions

Virginia Code § 58.1-322.03 1 allows taxpayers to deduct from their Virginia adjusted gross income certain amounts allowed for itemized deductions for federal income tax purposes. These deductions include those for real estate taxes, home mortgage interest, personal property taxes, medical expenses, and charitable contributions, provided they are claimed in accordance with the IRC and its related regulations.

The Department requested that the Taxpayers provide documentation supporting the charitable contribution deductions claimed on their Schedules A for the taxable years at issue. The requests indicated the specific documentation required to substantiate the deductions. Deductions for charitable contributions are allowable only when they can be substantiated through items such as receipts or cancelled checks. See Public Document (P.D.) 19-78 (7/29/2019) and P.D. 23-24 (3/1/2023). Any contribution over $250 must have a contemporaneous written acknowledgment from the donee indicating whether any goods or services were provided by the donee in connection with the contribution, and if so, what the value of those goods or services were. See Treas. Reg. § 1.170A-13(f)(2). Additional substantiation is required for gifts of property other than money. See Treas. Reg. § 1.170A-13.

Taxpayers must maintain records sufficient to allow the IRS to determine their correct tax liability. See Treas. Reg. § 1.6001-1(a). Similarly, Virginia Code § 58.1-310 provides:

Whenever in the opinion of the Department it is necessary to examine the federal income returns or any copy thereof of any individual, estate, trust, partnership or corporation in order properly to audit such returns, the Department or the commissioner of the revenue shall have the right to require such taxpayer to provide such return or a copy thereof and all statements, inventories, and schedules in support thereof.

Under the provisions of Virginia Code § 58.1-205, in any proceeding relating to the interpretation of the tax laws of Virginia, an “assessment of a tax by the Department shall be deemed prima facie correct.” As such, the burden of proof is on the Taxpayer to show that the Department’s assessment was erroneous.

The Department reviewed the documents submitted by the Taxpayers to substantiate their deductions and discovered that at least 14 of the Taxpayers’ donation lists were exact copies of lists submitted by multiple other taxpayers during the taxable years at issue. In addition, the Taxpayers’ application for correction was identical, or nearly identical, to that submitted by such other taxpayers. In light of this finding, the Department cannot accept the documentation submitted by the Taxpayers as substantiation for their claimed deductions. Accordingly, the Department’s assessments are upheld.

The Taxpayers will receive updated bills that will include accrued interest to date. The Taxpayers should remit the balances due within 30 days of the bill dates to avoid the accrual of additional interest and possible collection actions.

The Code of Virginia sections cited are available online at law.lis.virginia.gov. The public documents cited are available at tax.virginia.gov in the Laws, Rules & Decisions section of the Department’s website. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy, Tax Adjudication and Resolution, at or **.

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

AR/4926.X

Related Documents

19-78

23-24