Make no mistakes — the IRS means business

Description

Abstract: As part of the Pension Protection Act of 2006 (PPA), stiffer penalties await preparers, appraisers and taxpayers who misstate value or sidestep the appraisal process for tax purposes. This article discusses a recent court case that illustrates how overvaluation can prove costly in charitable contribution cases. The article also explains several new rules PPA introduced that revised the thresholds for substantial and gross valuation misstatements, discussing the potential implications for taxpayers. Case citation: Bergquist et al v. Commissioner, 131 T.C. No. 2, July 22, 2008.