Saturday, September 04, 2010
IRS Appraisals

Yellow Book Appraisals
 



Ask the Appraiser Ask the Appraiser

telephone  603 722-0663
email  chetrogers@tds.net

Testimonials Testimonials

Great site, Chet!  I can certainly say that if I had had access to such clear information, I would have gone into the easement process much more easily and promptly.  This is a real service.  I'll be sure to tell people about it. JR

Green Stuff Saved So Far Green Stuff Saved So Far

2,985 acres saved from development
10,817 feet of lake or pond frontage saved from development
3,300 feet of river frontage saved from development
96 houses NOT built

PENALTIES for FAULTY APPRAISALS

Accuracy-Related Penalties

The Pension Act imposes accuracy-related penalties of 20 percent for an underpayment of tax resulting from a “substantial” valuation misstatement, and 40 percent for a “gross” valuation misstatement. A “substantial” valuation misstatement is a value 150 percent or more of the amount determined to be the correct value, and a “gross” valuation misstatement is a value 200 percent or more of the amount determined to be correct.

The Pension Act also eliminates the reasonable cause exception in the case of any “gross” valuation misstatement. This means that the taxpayer may not rely upon an “I thought I received good professional advice” defense. The Pension Act also streamlined the procedural requirements for the Secretary of the Treasury to impose civil penalties or disciplinary action against an appraiser.

All of this means its up to you to hire a competent, experienced, appraiser because its you who pays the penalties (the appraiser pays penalties too!). Remember, you've given up some development rights forever and you could pay an IRS penalty if the appraisal is faulty.

When you file your taxes, both the appraiser and the land trust must sign your IRS 8283 form.