Valuations for United States federal tax purposes are generally required to be Qualified Appraisals. These valuations follow specific rules and must be performed by a Qualified Appraiser, which is defined by the Internal Revenue Service. Failure to meet these requirements can result in penalties.
Qualified Appraisals are generally made, signed, and dated by a qualified appraiser in accordance with generally accepted appraisal standards. They should meet the requirements of the relevant tax regulations. The date of the report must fall within a certain number of days from the taxable event, which can potentially differ or change with current tax regulations. Qualified Appraisals must not involve a prohibited appraisal fee.
The contents of a Qualified Appraisal report can be prescribed in the relevant tax regulations and must also meet the requirements of the applied appraisal standards, which can potentially be more stringent than the tax regulations. The Qualified Appraiser must hold an appropriate appraisal designation, or meet certain education and experience requirements. The Qualified Appraiser must also regularly prepare appraisals for which he or she is paid.
AN Valuations and its global team of experts offers Qualified Appraisers in various countries with years of United States tax valuation experience. We offer on-the-ground expertise in your international markets.