26 U.S.C. § 7517 — Furnishing on request of statement explaining estate or gift valuation

(a) General rule

The IRS sometimes decides — or proposes — how much an item of property is worth, for the estate tax (chapter 11), the gift tax (chapter 12), or the generation-skipping transfer tax (chapter 13).

When that happens, the executor of the estate, the donor who gave the gift, or the person who must file the generation-skipping tax return can ask the IRS, in writing, for a written statement explaining that value. The IRS must send the statement no later than 45 days after whichever comes later: the date of the request, or the date the IRS made or proposed the valuation.

(b) Contents of statement

The written statement the IRS sends must do three things:

1. Explain the basis on which the IRS determined or proposed that value.
2. Set out any computation used to arrive at that value.
3. Include a copy of any expert appraisal the IRS made or had made.

(c) Effect of statement

Sending this statement does not lock the IRS into that value. Except where some other law says otherwise, the value the IRS determined or proposed — and the method it used to reach that value — is not binding on the IRS. The IRS can still change its position later.