Section 6695A: Substantial and gross valuation misstatements attributable to incorrect appraisals
Internal Revenue Code
§6695A. Substantial and gross valuation misstatements attributable to incorrect appraisals
(1) a person prepares an appraisal of the value of property and such person knows, or reasonably should have known, that the appraisal would be used in connection with a return or a claim for refund, and
(2) the claimed value of the property on a return or claim for refund which is based on such appraisal results in a substantial valuation misstatement under
then such person shall pay a penalty in the amount determined under subsection (b).
(b) Amount of penalty
The amount of the penalty imposed under subsection (a) on any person with respect to an appraisal shall be equal to the lesser of—
(A) 10 percent of the amount of the underpayment (as defined in section 6664(a)) attributable to the misstatement described in subsection (a)(2), or
(2) 125 percent of the gross income received by the person described in subsection (a)(1) from the preparation of the appraisal.
No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that the value established in the appraisal was more likely than not the proper value.
Section 1219(b)(1) of
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by section 3(e)(1) of
Section applicable to appraisals prepared with respect to returns or submissions filed after Aug. 17, 2006, with special rule for certain easements, see section 1219(e)(2), (3) of