Charitable contribution of L-T Capital Gain Securities

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Taxpayer contributed publicly traded securities to 501c3 organization in 2013, 2014 & 2015, completing Form 8283 with full description. In each year the total contributions did not exceed 50% of AGI, but did exceed 30% of AGI. Taxpayer deducted the full amount, and did not limit the securities to the 30% limitation as should have been done. This office prepared the 2016 tax return and did use the 30% of AGI limit.
1. Since this was an unintentional error, the statute of limitations has run on the 2013 tax return, and therefore no amended return is required.
2. This office has advised taxpayer to amend 2014 & 2015 tax returns using the proper 30% of AGI limitation. Others have advised taxpayer to take no action since the IRS has not discovered the error, and the taxpayer made an honest mistake. In other words, "let sleeping dogs lie".
3. The understatement of tax in each year is less than 25% of the total tax.
Feedback on this issue will be appreciated.
 
Joined
Jul 15, 2017
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Hi,
When you owe taxes the IRS can go back 6-10 yrs so 2013 is still in the picture. I suggest make the correction for all years to avoid issues later on in case of an audit. Safe than sorry
 

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