Ezel / IRS Rulings / 201022021

CCA 201022021: Only the individual appraiser may sign Form 8283 and the appraisal

Number
201022021
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Value of Contribution; Penalties for Aiding and Abetting Understatement of Tax Liability
Topics
Income and deductions Procedure, penalties, and administration
Code sections
§ 170, § 6701
Ruling dated
May 5, 2010
Publicly released
June 4, 2010
Source
View Official PDF

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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice addresses who may sign Part III of Form 8283 and the corresponding appraisal. It concludes that the individual who completed the appraisal must sign both documents, rather than the appraisal firm. The advice relies on the qualified-appraisal rules under IRC § 170 and the penalty for a false or fraudulent overstatement under IRC § 6701. It also notes that appraisers are subject to Circular 230 and may be sanctioned or disqualified.

Ruling snapshot

  • Question: Who may sign Part III of Form 8283 and the related appraisal?
  • Outcome: Advice given
  • Key authorities: IRC §§ 170(f)(11)(E) and 6701(a); Treas. Reg. §§ 1.170A-13(c)(3) and 1.170A-13(c)(5)

Full text (IRS public release)

ID: CCA_2010050512285845 Number: 201022021
Release Date: 6/4/2010
Office: --------------
UILC: 170.02-00, 6701.00-00

From: -----------------------
Sent: Wednesday, May 05, 2010 12:29:09 PM
To: ----------------------
Cc:
Subject: Who signs form for appraisal

--------

This is to confirm our conversation regarding who can sign Part III (Declaration of Appraiser) on Form 8283 and the corresponding appraisal. As discussed, Form 8283 and the appraisal may not be signed by the appraisal firm. Both documents must be signed by the individual who completed the appraisal.

The language contained in Part III of Form 8283 and the instructions clearly indicate that the individual appraiser must sign the form and acknowledge that a false or fraudulent overstatement may subject the individual to a penalty under section 6701(a). Section 170(f)(11)(E) and Treas. Reg. sections 1.170A- 13(c)(3) and (5) state that a qualified appraisal is conducted by a qualified appraiser who is an individual meeting specific requirements. Treas. Reg. section 1.170A-13(c)(5)(iii) further states that if 2 or more appraisers contribute to an appraisal, each appraiser must sign the appraisal. The statutory language defining an appraiser as an individual and the regulations requiring each individual appraiser who works on the appraisal to sign the appraisal clearly indicates that a person, not a firm, must sign Form 8283 and the appraisal.

The reasoning behind this is that a person must be able to be held responsible for any false or fraudulent overstatement in the appraisal. Section 6701 provides a penalty for such actions. In addition, appraisers are subject to Circular 230 and may be sanctioned or disqualified.

Please let me know if you have any questions or if I can be of further assistance.

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