News By Tag
News By Place
Leading VPOs Send Letter to IRS & Treasury Questioning Changes Affecting Appraisal Penalties
ASA and its partners expressed concern this change could lead to several distinct outcomes:
First, that the reduction in the number of individuals involved in the process (previously, no less than five individuals were involved, including three with valuation training or expertise) could lead to an increase in the number of non-meritorious cases being brought against appraisers.
Second, that the cost of defending against a 6695A penalty and, potentially, lodging an appeal should IRS ultimately impose the penalty, could place appraisers in the difficult position of having to bear significant financial costs or face the reality of no longer performing tax-related appraisal work and the ripple effect such an outcome would have.
Third, that the new process increases the likelihood of factors outside of the appraisal – such as previous interactions or a sense of personal ownership – could drive the imposition of penalties even where there was not sufficient basis in the appraisal itself to support the penalty.
Finally, that the process by which IRS made this change – using a temporary process that did not involve outside stakeholder engagement – failed to take into consideration the potential impact of the change and overlooked the significant collaborative effort that went into crafting the original review process in the first place.
To read the full text of the letter and the January 22 memo announcing the change visit: https://bit.ly/
Questions or requests for further information about this joint announcement may be directed to ASA (800) 272-8258, ASFMRA (303) 758-3513, AI (888) 756-4624, AAA (212) 889-5404, AMEA (800) 537-8629, EAANA (800) 790-1053, IAAO (816) 701-8100, MBREA (617) 830-4530, NACVA (800) 677-2009, NAJA (718) 896-1536 or RICS (212) 847-7400