CCA 201024065: Appraisal and Form 8283 signatures must come from the appraiser who conducted the appraisal

Plain-English summary

The Office of Chief Counsel advised that the person who signs Form 8283 and the appraisal must be the appraiser who conducted the appraisal. A signature from someone else means the appraisal is not a qualified appraisal for purposes of IRC § 170, and the claimed deduction may be disallowed. The memo states that a properly executed Form 8283 appraisal summary is required to substantiate the contribution. It notes uncertainty about how the Tax Court would apply substantial-compliance principles to Form 8283, and also identifies a related Circular 230 concern.

Ruling snapshot

• Question: Who must sign the appraisal and Form 8283 for a charitable contribution deduction?
• Outcome: Advice given
• Key authorities: IRC § 170; Form 8283; Circular 230

Full text (IRS public release)

ID: CCA_2010051712495045 Number: 201024065
Release Date: 6/18/2010
Office: -------------
UILC: 170.02-00, 170.12-09, 999.00-00

From: -----------------------
Sent: Monday, May 17, 2010 12:49:54 PM
To: ----------------------------------------------------------
Cc: ------------------------------------------
Subject: RE: Information: ACT: Who signs form 8283 for appraisal ---------

There is no exception for the referenced entities. If someone other than the person(s) who conducted the appraisal is signing the appraisal than the appraisal is not a qualified appraisal for purposes of section 170 and the claimed deduction may be disallowed. This is regardless of whether the person signing is or is not an appraiser.

The person who signs the 8283 and the appraisal must be the appraiser who conducted the appraisal. Attaching a properly executed 8283 (i.e., "appraisal summary") is required to substantiate the contribution, so failure to do so should lead to disallowance of the deduction.

However, we are not aware of any cases where the 8283 was not signed by the right person. Some Tax Court cases have taken the view that "substantial compliance" with certain substantiation requirements under the 170 regs is sufficient (e.g., Bond and Simmons). Both of those cases had to do with the appraisal itself, though -- not the 8283. It is, therefore, uncertain how the Tax Court would resolve this issue. Furthermore, this creates a Circular 230 issue, as previously discussed, because the Service must be able to hold the appraiser responsible for any false or fraudulent overstatement in the appraisal.