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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
complete the Declaration of Appraiser section 2. The appraisal resulted in: Responsibility of the IRS. The IRS is respon-
on Form 8283, Section B. More than one ap- a. A substantial valuation misstatement, sible for reviewing appraisals, but it is not re-
praiser may appraise the property, provided sponsible for making them. Supporting the FMV
that each complies with the requirements, in- b. A substantial estate or gift valuation listed on your return is your responsibility.
cluding signing the qualified appraisal and the understatement, or
Declaration of Appraiser section on Form 8283, c. A gross valuation misstatement. The IRS does not accept appraisals without
Section B. question. The IRS does not recognize any
Excluded individuals. The following indi- The penalty imposed on the appraiser is the particular appraiser or organization of apprais-
ers.
viduals cannot be qualified appraisers for the smaller of:
donated property. 1. The greater of: Timing of IRS action. The IRS generally
1. The donor of the property or the taxpayer a. 10% of the underpayment due to the does not approve valuations or appraisals be-
who claims the deduction. misstatement, or fore the actual filing of the tax return to which
2. The donee of the property. b. $1,000; or the appraisal applies. In addition, the IRS gen-
erally does not issue advance rulings approving
3. A party to the transaction in which the do- 2. 125% of the gross income received for the or disapproving such appraisals.
nor acquired the property being appraised, appraisal. Exception. For a request submitted as de-
unless the property is donated within 2 scribed earlier under Art valued at $50,000 or
months of the date of acquisition and its No penalty is imposed if the appraiser can more, the IRS will issue a Statement of Value
appraised value is not more than its ac- establish that the appraisal’s value is more that can be relied on by the donor of the item of
quisition price. This applies to the person likely than not correct. art.
who sold, exchanged, or gave the prop- In addition, any appraiser who falsely or
erty to the donor, or any person who acted fraudulently overstates the value of property de-
that the appraiser has signed may be subject to Penalty
as an agent for the transferor or donor in scribed in a qualified appraisal of a Form 8283
the transaction. a civil penalty for aiding and abetting as under-
4. Any person employed by any of the above statement of tax liability, and may have their ap- You may be liable for a penalty if you misstate
persons. For example, if the donor ac- praisal disregarded. the value or adjusted basis of donated property.
quired a painting from an art dealer, nei-
ther the dealer nor persons employed by Form 8283 20% penalty. The penalty is 20% of the un-
the dealer can be qualified appraisers for derpayment of tax related to the misstatement
that painting. if:
5. Any person related under section 267(b) Generally, if the claimed deduction for an item • The value or adjusted basis claimed on the
of donated property is more than $5,000, you
of the Internal Revenue Code to any of the must attach Form 8283 to your tax return and return is 150% or more of the correct
above persons or married to a person rela- complete Section B. amount, and
ted under section 267(b) to any of the • You underpaid your tax by more than
above persons. If you do not attach Form 8283 to your return $5,000 because of the misstatement.
6. An appraiser who appraises regularly for a and complete Section B, the deduction will not 40% penalty. The penalty is 40%, rather than
be allowed unless your failure was due to rea-
person in (1), (2), or (3), and who does not sonable cause and not willful neglect, or was 20%, if:
perform a majority of their appraisals due to a good faith omission. • The value or adjusted basis claimed on the
made during their tax year for other per- return is 200% or more of the correct
sons. You must attach a separate Form 8283 for amount, and
7. An individual who receives a prohibited each item of contributed property that is not part • You underpaid your tax by more than
appraisal fee for the appraisal of the dona- of a group of similar items. If you contribute sim- $5,000 because of the misstatement.
ted property. See Prohibited appraisal fee, ilar items of property to the same donee organi-
those items. If you contribute similar items of How To Get Tax Help
earlier. zation, you need attach only one Form 8283 for
8. An individual who is prohibited from prac- property to more than one donee organization,
ticing before the IRS under section 330(c) you must attach a separate form for each do- If you have questions about a tax issue; need
of title 31 of the United States Code at any nee. help preparing your tax return; or want to down-
time during the 3‐year period ending on load free publications, forms, or instructions, go
the date the appraisal is signed by the in- IRS Review of Appraisals to IRS.gov to find resources that can help you
dividual. right away.
In addition, an individual is not a qualified In reviewing an income tax return, the IRS may
appraiser for a particular donation if the donor accept the claimed value of the donated prop- Preparing and filing your tax return. After
had knowledge of facts that would cause a rea- erty, based on information or appraisals sent receiving all your wage and earnings state-
sonable person to expect the appraiser to with the return, or may make its own determina- ments (Forms W-2, W-2G, 1099-R, 1099-MISC,
falsely overstate the value of the donated prop- tion of FMV. In either case, the IRS may: 1099-NEC, etc.); unemployment compensation
erty. For example, if the donor and the ap- • Contact the taxpayer to get more informa- statements (by mail or in a digital format) or
praiser make an agreement concerning the tion; other government payment statements (Form
amount at which the property will be valued, • Refer the valuation problem to an IRS ap- 1099-G); and interest, dividend, and retirement
and the donor knows that amount is more than praiser or valuation specialist; statements from banks and investment firms
the FMV of the property, the appraiser is not a • Refer the issue to Art Appraisal Services (Forms 1099), you have several options to
qualified appraiser for the donation. (AAS), a department of professional ap- choose from to prepare and file your tax return.
You can prepare the tax return yourself, see if
Appraiser penalties. An appraiser who praisers who consults with the Commis- you qualify for free tax preparation, or hire a tax
prepares an incorrect appraisal may have to sioner's Art Advisory Panel, a group of in- professional to prepare your return.
dependent dealers and curators. A referral
pay a penalty if: to AAS is mandatory for fine and decora-
1. The appraiser knows or reasonably should tive art valued at $50,000 or more; or Free options for tax preparation. Go to
IRS.gov to see your options for preparing and
have known the appraisal would be used • Contract with an independent appraiser to
in connection with a return or claim for re- appraise the property when the objects re-
fund,; and quire appraisers of highly specialized ex-
perience and knowledge.
Publication 561 (January 2023) Page 11