26 U.S.C. § 6695A — Substantial and gross valuation misstatements attributable to incorrect appraisals
submitted 20 years ago by Pub. L. 109-280 to r/title-26-INTERNAL-REVENUE-CODE · 235 words · no verdicts yet
An appraiser owes a penalty when the appraiser knows, or reasonably should have known, an appraisal will be used for a return or refund claim and the claimed value creates a substantial, estate-or-gift, or gross valuation misstatement. The penalty is limited by the appraisal income and can be avoided if the value was more likely than not correct.
(a) Imposition. If a person prepares a property appraisal knowing, or reasonably should have known, it would be used with a return or refund claim, and the claimed value based on it creates a substantial valuation misstatement under chapter 1, a substantial estate or gift tax valuation understatement, or a gross valuation misstatement under section 6662, the person owes the subsection (b) penalty. (b) Amount. The penalty is the lesser of (1) the greater of (A) 10 percent of the underpayment attributable to the misstatement or (B) $1,000, and (2) 125 percent of the appraiser’s gross income from preparing the appraisal. (c) Exception. No penalty applies if the person satisfies the Secretary* that the appraised value was more likely than not the proper value.
If—
a person prepares an appraisal of the value of property and such person knows, or reasonably should have known, that the appraisal would be used in connection with a return or a claim for refund, and
the claimed value of the property on a return or claim for refund which is based on such appraisal results in a substantial valuation misstatement under chapter 1 (within the meaning of section 6662(e)), a substantial estate or gift tax valuation understatement (within the meaning of section 6662(g)), or a gross valuation misstatement (within the meaning of section 6662(h)), with respect to such property,
then such person shall pay a penalty in the amount determined under subsection (b).
The amount of the penalty imposed under subsection (a) on any person with respect to an appraisal shall be equal to the lesser of—
the greater of—
10 percent of the amount of the underpayment (as defined in section 6664(a)) attributable to the misstatement described in subsection (a)(2), or
$1,000, or
125 percent of the gross income received by the person described in subsection (a)(1) from the preparation of the appraisal.
No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary* that the value established in the appraisal was more likely than not the proper value.
Source credit: (Added Pub. L. 109–280, title XII, § 1219(b)(1), Aug. 17, 2006, 120 Stat. 1084; amended Pub. L. 110–172, §§ 3(e)(1), 11(a)(40), Dec. 29, 2007, 121 Stat. 2474, 2488.)
- 2006Enacted · Pub. L. 109-280 · 120 Stat. 1084
- 2007Amended · Pub. L. 110-172 · 121 Stat. 2474, 2488
A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-280 on 2006-08-17.
all 0 arguments · sorted by: best
no arguments yet — make the first case