What is an IRS Qualified Appraiser?
An IRS Qualified Appraiser is an individual who meets specific criteria set by the Internal Revenue Service (IRS) to perform appraisals for tax purposes. These criteria ensure that the appraiser is competent, independent, and able to provide accurate valuations. Here are the key characteristics and requirements for an IRS Qualified Appraiser:
Professional Qualifications:
Education and Training: The appraiser must have completed professional or college-level coursework in valuing the type of property being appraised.
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Experience: They should have verifiable experience in appraising the type of property for which the appraisal is performed.
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Certification and Licensing: The appraiser must be licensed or certified in the state in which they practice, if applicable, and meet the regulatory requirements for the type of property being appraised.
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Professional Designations: Holding a professional designation from a recognized appraisal organization (e.g., the Appraisal Institute, the American Society of Appraisers, the International Society of Appraisers) can help establish the appraiser’s qualifications.
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Regular Practice: The appraiser must regularly perform appraisals for compensation. This means they should be actively engaged in the appraisal profession. Independence: The appraiser should not have a prohibited relationship with the donor or donee, meaning they should not be related or have any conflict of interest that could affect their impartiality.
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Compliance with Standards: The appraiser must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) or similar professional appraisal standards.
Specific IRS Requirements
According to the IRS regulations (Treasury Regulation Section 1.170A-13(c)(5)), a qualified appraiser is defined as an individual who:
Has Earned an Appraisal Designation: From a recognized professional appraisal organization for demonstrated competency in valuing the type of property being appraised, OR Meets Education and Experience Requirements:
Has completed coursework in valuing the type of property and has at least two years of experience in regularly performing appraisals for that type of property.
Complies with IRS Regulations: Is not prohibited from practicing before the IRS at any time during the three years preceding the appraisal. Demonstrates verifiable education and experience in valuing the type of property being appraised.