In e-mail chief counsel advice, the IRS has confirmed that in cases where a qualified appraisal must be performed to substantiate the value of a taxpayer's charitable contribution, the appraiser rather than the appraisal firm must sign both the appraisal and the donor's Form 8283.
ECC 201022021
Full Text:
UILC: 170.02-00, 6701.00-00
Release Date: 6/4/2010
The language contained in Part III of Form 8283 and the instructions clearly indicate that the individual appraiser must sign the form and acknowledge that a false or fraudulent overstatement may subject the individual to a penalty under section 6701(a). Section 170(f)(11)(E) and Treas. Reg. sections 1.170A-13(c)(3) and (5) state that a qualified appraisal is conducted by a qualified appraiser who is an individual meeting specific requirements. Treas. Reg. section 1.170A-13(c)(5)(iii) further states that if 2 or more appraisers contribute to an appraisal, each appraiser must sign the appraisal. The statutory language defining an appraiser as an individual and the regulations requiring each individual appraiser who works on the appraisal to sign the appraisal clearly indicates that a person, not a firm, must sign Form 8283 and the appraisal.
The reasoning behind this is that a person must be able to be held responsible for any false or fraudulent overstatement in the appraisal. Section 6701 provides a penalty for such actions. In addition, appraisers are subject to Circular 230 and may be sanctioned or disqualified.
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