By Howard A. Lewis, ABAR, AVA – IBA Executive Director
October 21, 2009
Following the enactment of the American Jobs Creation Act of 2004 and the Pension Protection Act of 2006, the Internal Revenue Service took certain steps to address the tax-related appraisal provisions of the legislation. The provisions involved reporting requirements for non cash charitable contributions, new definitions of appraisal standards relating to both appraisals and appraisers, new and revised penalties and potential disciplinary actions against appraisers responsible for certain valuation misstatements, and other related actions.
In 2007, the Treasury Inspector General for Tax Administration (TIGTA) issued an audit report entitled “The IRS Needs to Improve Procedures to Indentify Non-Compliance with the Reporting Requirements for Noncash Charitable Contributions.” To address the recommendations of this report, IRS formed a team including IRS staff and external stakeholders. Recently, IRS announced the final approved actions addressing the TIGTA report.
The actions include:
- A webpage on IRS.GOV that provides ready access to Charitable Contribution and to Appraisal & Appraiser Requirements. See http://www.irs.gov/charities/contributors/article/0,,id=182838,00.html
- Making available speakers, as funding permits, at external stakeholder national conferences to promote awareness of the reporting requirements.
- Partnering with external stakeholders within their organizations to notify constituents of enhanced reporting requirements.
- Encouraging external stakeholders to place a direct link on their organization’s websites to the new IRS.GOV website.
On December 7, 2009 IBA will host a webinar on the PPA and appraisal-related penalties, including two senior IRS officials. Watch for registration information for this webinar entitled,”Professional Responsibility and the BV Appraiser- Latest IRS Rules“, by visiting the education and webinar section of IBA’s website located at www.go-iba.org to learn more about this and other webinars.