August-06

 

Summary

The following is one section of the Pension Reform Act that addessess the importance of working with a qualified appraiser.  The IRS defines a qualified appraiser as one who has earned a designation from a recognized organization such as the Appraisal Institute.

 

Appraisal Provisions Summary, Pension Reform Act (H.R. 4, House Passed)

Scope

Applies to all appraisals performed for non-cash charitable contributions and estate and gift taxes.

 

Qualified Appraisal

Shall be conducted by a "qualified appraiser" in accordance with generally accepted appraisal standards and any regulations or other guidance prescribed by the Department of the Treasury.

 

Qualified Appraiser

1) Has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations prescribed by the Secretary;

2) Regularly performs appraisals for which the individual receives compensation, and

3) Meets such other requirements as may be prescribed by the Secretary in regulations or other guidance.

An individual shall not be treated as a qualified appraiser with respect to any specific appraisal unless

o The individual demonstrates verifiable education and experience in valuing the type of property subject to the appraisal, and

o The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31, United States Code, at any time during the 3-year period ending on the date of the appraisal.