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What is Form 1098-C?

Form 1098-C is used to report contributions of Motor Vehicles, Boats, and Airplanes to the IRS for each contribution of a qualified vehicle done by an organization that has a claimed value of more than $500. The donor cannot claim a deduction of more than $500 for that vehicle. A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways; as well as a boat; or an airplane.

Note: An acknowledgment needs to be submitted no later than 30 days after the sale of the vehicle, or the date of the contribution. Donees must ensure that the odometer reading is in miles, not kilometres. If the odometer is calibrated in kilometres, you must convert the kilometres to miles using the following calculation.

Kilometres x 0.62137 = miles

How to File IRS Form 1098-C with IRS?

1098 C Form
Information required to file Form 1098-C
  • Taxpayer’s (Donee) information
  • Vehicle’s information
  • Sales details

Watch our step by step video for Form 1098-C

IRS requires that all income and deductible expenses are reported by businesses and individuals or penalties could apply. Each sale of a donated vehicle must have gross proceeds of $500 or more.

Form 1098-C Instructions:
  • Box 1: Date of contribution
  • Box 2 (2a to 2d): Vehicle Information
  • Box 3: Vehicle or other identification numbers
  • Box 4: Donee information related to Vehicle (Date of Sale)
  • Box 5 (5a to 5c): Vehicle transferred information
  • Box 6 (6a to 6c): Details of goods or services in exchange for the vehicle’s information
  • Box 7: Checkbox, donor claim information

Common Payers Who File Form 1098-C?

A donee organization must file a separate Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500.

There are three copies of the forms the first copy goes to the IRS; the second copy goes to the Donor and the third copy goes to the Donor’s Records. The donor will be provided with Copies B and C of Form 1098-C or the filer’s acknowledgment that contains the required information. If the filer does not attach Form 1098-C (or another statement), the contribution will not be deducted.

Tax2efile is equipped to help you handle numerous filing requirements and we will be happy to help you do your filing. We also offer printing and mailing services to complete the process for you.

  • A domestic bank, trust company, building and loan association, or savings and loan association
  • A credit union
  • A federal government agency (including: a department, an agency, a court or court administrative office, or an instrumentality in the judicial or legislative branch of the government)
  • Subunits of Federal Deposit Insurance Corporation, National Credit Union Administration, any other federal executive agency, including government corporations, any military department, U.S. Postal Service and Postal Rate Commission.
  • Any organization whose significant trade (or business) is lending of money, such as a finance company or credit card company (whether affiliated with a financial institution).
  • A corporation that is a subsidiary of a financial institution or credit union, but only if, because of their affiliation, they are subject to supervision and examination by a federal or state regulatory agency.

Note: If in the same calendar year, you cancel a debt of $600 or more in connection with a foreclosure or abandonment of secured property, it is not necessary to file both Form 1099-A , Acquisition or Abandonment of Secured Property, and Form 1099-C for the same debtor.

Qualifications to File Form 1098-C?

A donee organization must file a separate Form 1098-C (Contributions of Motor Vehicles) with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $600, generally, the maximum deduction the filer can take is the smaller of the amount that the charity sold the vehicle for or the car's value on the day they donate it. However, the organization may file a separate Form 1098-C for each contribution.

For more information on Form 1098-C, please visit IRS.

When is the Due Date to File Form 1098-C?

Filing Type Deadline
Recipient copy 30 days from the Date of Sale or Contribution
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer may need to E-file on the next business day.

Still Have Questions?

Form 1098-C is used to report contributions of motor vehicles, boats, and airplanes.

A donee organization must file a separate Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500. A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane. However, property held by the donor primarily for sale to customers, such as inventory of a car dealer, is not a qualified vehicle.

Details that are required to file Form 1098-C are: Donee’s & Donor’s Names, Address, TINs, Date of contribution, Vehicles information, Date of sale, Gross proceeds from sale and Value of goods and services provided in exchange for the vehicle.

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all the Donors to an excel sheet for a faster process.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

Tax2efile allows you to correct a mistake to the recipient’s information such as TINs, Names & amounts.

To file Form 1098-C for a single return the filing fee is $3.25.

The IRS requires Form 1098-C to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.

The penalty can be from $50 per 1098 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1098 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1098 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement.

If you have more questions, please refer to our FAQ page.

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