Amy E. Heller trusts and estates attorney for Weil, Gotshal & Manges LLP, wrote an informative article in the RPPT E-Reort about new IRS penalties derived from the Pension Protection Act of 2006.
An Excerpt from the article:
A “substantial valuation misstatement under chapter 1” will be present if the value of property claimed on a return of tax imposed by chapter 1 is 150 percent or more of the amount determined to be the correct value.” For example, if a taxpayer claims an income tax charitable deduction of $15,000,000 based on an appraisal of a painting that he donates to a museum, and the correct value of the painting is later determined to be only $10,000,000, the appraiser who prepared the appraisal is likely to be subject to penalties under Code §6695A.
Ms. Weil concludes with:
The new penalties create an unlevel playing field for appraisers engaged by taxpayers and appraisers engaged by the IRS. Taxpayer appraisers must face the possibility of penalties if their appraisals are later rejected; IRS appraisers face no similar penalties no matter how far their appraisals are from the values finally determined for tax purposes.
To read the complet article click HERE
1 comment:
I am a Canadian personal property appraiser, and I concur. In Canada our CRA ( agency like your IRS) requires two professional appraisals before the recipient of the donation may issue tax slips to donars.
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