Appraisers (and Charities) Beware

Appraisers (and Charities) Beware

News story posted in Information Release on 9 April 2014| 1 comments
audience: National Publication | last updated: 10 April 2014
Print
||
Rate:

In a recent release, IR-2014-31, Karen L. Hawkins, Director of the Office of Professional Responsibility, entered into a settlement agreement with five appraisers from the same firm for violations of Circular 230. The settlement included five year suspensions for the appraisers. At issue was the perceived lack of due diligence in submitting appraisals on facade easements that were donated to charities over multiple years. The appraisers apparently used the same valuation adjustment of 15% for each of the donations, essentially "rubber stamping" the appraisals instead of exercising proper diligence. All of the Part III, of Form 8283, Non-Cash Charitable Contribution Forms were completed in a like manner.

While the penalty may seem severe, it appears that the appraisers admitted their lack of compliance and that their appraisals were unsupported by acceptable documentation. This notice does not suggest any action was taken against the charities that relied on the appraisers to supply accurate documentation. Charities, however, should take note of this action and use their own due diligence if an appraiser is to be engaged for complex valuations.

Add comment

Login to post comments

Comments

Group details

  • You must login in order to post into this group.

Follow

RSS

This group offers an RSS feed.
 
7520 Rates:  Aug 1.2% Jul 1.2.% Jun 1.2.%

Already a member?

Learn, Share, Gain Insight, Connect, Advance

Join Today For Free!

Join the PGDC community and…

  • Learn through thousands of pages of content, newsletters and forums
  • Share by commenting on and rating content, answering questions in the forums, and writing
  • Gain insight into other disciplines in the field
  • Connect – Interact – Grow
  • Opt-in to Include your profile in our searchable national directory. By default, your identity is protected

…Market yourself to a growing industry