In August 2006 Congress passed a law called the Pension Protection Act which redefined the federal definition of “qualified appraiser” and “qualified appraisal” for all appraisals performed for the IRS.
Qualified Appraiser Qualifications Changes
Formerly a “qualified appraiser” simply had to hold himself out to the public as an appraiser or perform appraisals on a regular basis.
The new definition requires that a “qualified appraiser” must have the following requirements:
- Have earned an appraisal designation from a recognized appraisal organization such as American Society of Appraisers.
- Be regularly performing and receiving payment for appraisals.
- Be able to demonstrate verifiable education and experience in valuing the type of property appraised.
How Does This Law Affect You?
If you need an appraisal for charitable contribution, estate tax, estate settlement, income tax or any other IRS purpose and you don’t want to risk questions or an IRS audit, then you need to use a qualified appraiser and submit a qualified document.