{"product_id":"qualified-appraisals-and-qualified-appraisers-isbn-9781119437574","title":"Qualified Appraisals and Qualified Appraisers","description":"\u003cp\u003e\u003cb\u003eDecode IRS appraisal regulations and find practical solutions to current issues\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eQualified Appraisers and Qualified Appraisals\u003c\/i\u003e provides clarification on complex IRS guidelines, and offers solutions and insight that can help appraisers adhere to the latest Treasury Regulations concerning appraisals submitted in tax matters. From the Uniform Standards of Professional Appraisal Practice to IRS regulations, this book explores the body of law that has arisen around the production of “qualified appraisals” that the government and courts will accept. The discussion covers estate, gift, charitable contribution, income taxes, and more, with expert guidance on the interpretation and application of complex regulations. As appraisers often are called upon to provide expert testimony in court, this book shares effective methods including the novel “hot-tubbing” technique that eliminates the appearance of bias in favor of a less-adversarial discussion. Cases are dissected as they relate to application of existing appraisal laws, and the companion website features checklists, references, and additional cases as they become available.\u003c\/p\u003e \u003cp\u003eThe IRS regulations on qualified appraisers and qualified appraisals have sparked a storm of controversy, and have raised more questions than they have answered. This book acknowledges the problems and offers solutions to help appraisers produce work the IRS and courts will accept.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstand the laws surrounding “qualified appraisals” and “qualified appraisers”\u003c\/li\u003e \u003cli\u003eGain insight on testifying as an expert, including new techniques\u003c\/li\u003e \u003cli\u003eExplore solutions to common issues the IRS raises with respect to qualified appraisals and qualified appraisers\u003c\/li\u003e \u003c\/ul\u003e \u003cul\u003e \u003cli\u003eExamine cases that illustrate the nuances of appraisal law application\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn order for an appraisal to satisfy the government, an appraisal must be performed by a “qualified appraiser” specific for the type of property in question. This broad statement leaves much to question, but \u003ci\u003eQualified Appraisers and Qualified Appraisals\u003c\/i\u003e provides the answers appraisers need to comply with the law and produce work that meets the latest standards.\u003c\/p\u003e \u003cp\u003eForeword by \u003ci\u003eShannon P. Pratt\u003c\/i\u003e xvii\u003c\/p\u003e \u003cp\u003eForeword by\u003ci\u003e Jay E. Fishman \u003c\/i\u003exix\u003c\/p\u003e \u003cp\u003ePreface xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Tax Valuation and the Necessity for Expert Appraisals 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 1\u003c\/p\u003e \u003cp\u003eThe Need for Valuation Experts 1\u003c\/p\u003e \u003cp\u003eValuation in Tax Reporting 2\u003c\/p\u003e \u003cp\u003eValuation in Tax Litigation 3\u003c\/p\u003e \u003cp\u003eValuation in Business and Familial Matters 4\u003c\/p\u003e \u003cp\u003eValuation Calculation Standards 4\u003c\/p\u003e \u003cp\u003eFair Market Value Defined 5\u003c\/p\u003e \u003cp\u003eImplied Assumptions 6\u003c\/p\u003e \u003cp\u003eCash Value and Market Value 7\u003c\/p\u003e \u003cp\u003eComputing Fair Market Value 7\u003c\/p\u003e \u003cp\u003eStep 1: Calculating Net Asset Value 8\u003c\/p\u003e \u003cp\u003eStep 2: Applying Discounts and Premiums 9\u003c\/p\u003e \u003cp\u003eCommon Tax Appraisal Reports 9\u003c\/p\u003e \u003cp\u003eAppraisal Reports to Support Tax Reporting Positions 9\u003c\/p\u003e \u003cp\u003eAppraisal Reports to Support Tax Litigation 10\u003c\/p\u003e \u003cp\u003eProliferation of Litigation 10\u003c\/p\u003e \u003cp\u003eConclusion 11\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Qualified Appraisal 12\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 12\u003c\/p\u003e \u003cp\u003eDefining Qualified Appraisal 12\u003c\/p\u003e \u003cp\u003eSituations in Which a Qualified Appraisal May Be Required 13\u003c\/p\u003e \u003cp\u003eQualified Appraisal Requirements for Charitable Contribution Deductions Context 14\u003c\/p\u003e \u003cp\u003eRequirements 15\u003c\/p\u003e \u003cp\u003eLegislative History 16\u003c\/p\u003e \u003cp\u003eStatutory Definition of a Qualified Appraisal 18\u003c\/p\u003e \u003cp\u003eRegulatory Definition of a Qualified Appraisal 18\u003c\/p\u003e \u003cp\u003eRequirement 1: The 60-Day Requirement: Treas. Reg. § 1.170A-13(c)(3)(i)(A) 19\u003c\/p\u003e \u003cp\u003eRequirement 2: The Qualified Appraiser Requirement: Treas. Reg. § 1.170A-13(c)(3)(i)(B) 19\u003c\/p\u003e \u003cp\u003eRequirement 3: The Substantive Requirements: Treas. Reg. § 1.170A-13(c)(3)(i)(C) 20\u003c\/p\u003e \u003cp\u003eRequirement 3.1: Property Description: Treas. Reg. § 1.170A-13(c)(3)(ii)(A) 20\u003c\/p\u003e \u003cp\u003eRequirement 3.2: Tangible Property: Treas. Reg. § 1.170A-13(c)(3)(ii)(B) 21\u003c\/p\u003e \u003cp\u003eRequirement 3.3: Date of Contribution: Treas. Reg. § 1.170A-13(c)(3)(ii)(C) 21\u003c\/p\u003e \u003cp\u003eRequirement 3.4: Terms of Agreement: Treas. Reg. § 1.170A-13(c)(3)(ii)(D) 22\u003c\/p\u003e \u003cp\u003eRequirement 3.5: Identifying Information of the Qualified Appraiser: Treas. Reg. § 1.170A-13(c)(3)(ii)(E) 23\u003c\/p\u003e \u003cp\u003eRequirement 3.6: The Qualifications of the Qualified Appraiser: Treas. Reg. § 1.170A-13(c)(3)(ii)(F) 24\u003c\/p\u003e \u003cp\u003eRequirement 3.7: Statement of Preparation for Income Tax Purposes: Treas. Reg. § 1.170A-13(c)(3)(ii)(G) 24\u003c\/p\u003e \u003cp\u003eRequirement 3.8: Date(s) of Appraisal: Treas. Reg. § 1.170A-13(c)(3)(ii)(H) 25\u003c\/p\u003e \u003cp\u003eRequirement 3.9: Appraised Fair Market Value: Treas. Reg. § 1.170A-13(c)(3)(ii)(I) 25\u003c\/p\u003e \u003cp\u003eRequirements 3.10 and 3.11: Valuation and Basis Used to Determine Fair Market Value: Treas. Reg. §§ 1.170A-13(c)(3)(ii)(J) and (K) 26\u003c\/p\u003e \u003cp\u003eRequirement 4: No Prohibited Fee Arrangement: Treas. Reg. § 1.170A-13(c)(3)(i)(D) 27\u003c\/p\u003e \u003cp\u003eThe Qualified Appraisal Requirement and Pass-Through Entities 27\u003c\/p\u003e \u003cp\u003eInterplay of the Qualified Appraisal and Appraisal Summary Requirements 28\u003c\/p\u003e \u003cp\u003eLitigation Concerning Qualified Appraisals 29\u003c\/p\u003e \u003cp\u003eConclusion 29\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Qualified Appraiser 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 31\u003c\/p\u003e \u003cp\u003eLegislative History 31\u003c\/p\u003e \u003cp\u003eStatutory Requirements 32\u003c\/p\u003e \u003cp\u003eStatutory Requirement #1: Appraisal Designation or Certain Minimum Education and Experience Requirements 33\u003c\/p\u003e \u003cp\u003eStatutory Requirement #2: Regularly Performs Appraisals for Compensation 34\u003c\/p\u003e \u003cp\u003eStatutory Requirement #3: Verifiable Education and Experience 34\u003c\/p\u003e \u003cp\u003eStatutory Requirement #4: Not Prohibited from Practice by 31 U.S.C. § 330(c) 34\u003c\/p\u003e \u003cp\u003eRegulatory Requirements 35\u003c\/p\u003e \u003cp\u003eAppraiser’s Declaration 35\u003c\/p\u003e \u003cp\u003eRegulatory Requirement #1: Declaration That Individual Is an Appraiser: Treas. Reg. § 1.170A-13(c)(5)(i)(A) 36\u003c\/p\u003e \u003cp\u003eRegulatory Requirement #2: Declaration That the Appraiser Is Qualified to Value the Property: Treas. Reg. § 1.170A-13(c)(5)(i)(B) 36\u003c\/p\u003e \u003cp\u003eRegulatory Requirement #3: Declaration That the Appraiser Is Not an Excluded Person: Treas. Reg. § 1.170A-13(c)(5)(i)(C) 36\u003c\/p\u003e \u003cp\u003eRegulatory Requirement #4: Declaration That the Appraiser Understands Consequences of Fraudulent Valuation: Treas. Reg. § 1.170A-13(c)(5)(i)(D) 38\u003c\/p\u003e \u003cp\u003eAdditional Declaration Requirements of Notice 2006-96 38\u003c\/p\u003e \u003cp\u003eDenial of Appraiser Status 39\u003c\/p\u003e \u003cp\u003eAppraisals by More than One Appraiser 40\u003c\/p\u003e \u003cp\u003eAppraisal Fees 40\u003c\/p\u003e \u003cp\u003eJudicial Interpretation of the Requirements 41\u003c\/p\u003e \u003cp\u003eSufficiency of Documentation 41\u003c\/p\u003e \u003cp\u003eScrutiny of Qualifications 42\u003c\/p\u003e \u003cp\u003eExcluded Parties 42\u003c\/p\u003e \u003cp\u003eMultiple Appraisers 42\u003c\/p\u003e \u003cp\u003eConclusion 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Substantial Compliance vs. Strict Compliance 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 43\u003c\/p\u003e \u003cp\u003eOverview of the Strict and Substantial Compliance Doctrines 43\u003c\/p\u003e \u003cp\u003eApplicability of the Substantial Compliance Doctrine 44\u003c\/p\u003e \u003cp\u003eJudicial Approaches to the Substantial Compliance Doctrine 45\u003c\/p\u003e \u003cp\u003eSurvey of Cases Applying the Substantial Compliance Doctrine 45\u003c\/p\u003e \u003cp\u003e\u003ci\u003eBond v. Commissioner\u003c\/i\u003e: The First Application of the Substantial Compliance Doctrine in the Context of the ualified Appraisal Regulation 46\u003c\/p\u003e \u003cp\u003ePost-\u003ci\u003eBond \u003c\/i\u003eDecisions: Cases Finding Substantial Compliance 47\u003c\/p\u003e \u003cp\u003eSupplemental Information from Form 8283 47\u003c\/p\u003e \u003cp\u003eSufficient Information for IRS to Evaluate Reported Contributions as Intended by Congress 48\u003c\/p\u003e \u003cp\u003eA New Trend? 48\u003c\/p\u003e \u003cp\u003ePost-\u003ci\u003eBond \u003c\/i\u003eDecisions: Cases Finding No Substantial Compliance 49\u003c\/p\u003e \u003cp\u003eAbsence of Qualified Appraisal 49\u003c\/p\u003e \u003cp\u003eFlawed Appraisal Reports 50\u003c\/p\u003e \u003cp\u003ePost-\u003ci\u003eScheidelman \u003c\/i\u003eCases 53\u003c\/p\u003e \u003cp\u003eJudicial Approaches to the Strict Compliance Doctrine 53\u003c\/p\u003e \u003cp\u003eThe Substantial Compliance Doctrine in the Appellate Courts 54\u003c\/p\u003e \u003cp\u003eReasonable Cause: Codification of the Substantial Compliance Doctrine 55\u003c\/p\u003e \u003cp\u003eConclusion 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Government Expert Witnesses 58\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 58\u003c\/p\u003e \u003cp\u003eThe Government’s Need for Expert Testimony 58\u003c\/p\u003e \u003cp\u003eIRS Criteria for Expert Selection 59\u003c\/p\u003e \u003cp\u003eInternal IRS Valuation Experts 60\u003c\/p\u003e \u003cp\u003eIRS Hiring, Training, and Evaluation of Internal Valuation Experts 62\u003c\/p\u003e \u003cp\u003eHiring 62\u003c\/p\u003e \u003cp\u003eTraining 62\u003c\/p\u003e \u003cp\u003ePerformance Evaluation and Management Oversight 63\u003c\/p\u003e \u003cp\u003eIRS Use of Internal Valuation Expert Witnesses 63\u003c\/p\u003e \u003cp\u003eAdvantages to Using an Internal Valuation Expert as an Expert Witness 63\u003c\/p\u003e \u003cp\u003eThe Inherent Bias Problem 63\u003c\/p\u003e \u003cp\u003eCourt Reactions to Government Employee Expert Witnesses 64\u003c\/p\u003e \u003cp\u003eGovernment’s Decision to Not Present an Expert Witness 66\u003c\/p\u003e \u003cp\u003eConclusion 67\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 The Practicalities of Selection and Preparation of Experts 68\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 68\u003c\/p\u003e \u003cp\u003eSelecting an Appraiser 68\u003c\/p\u003e \u003cp\u003eEducation, Training, Professional Experience, and Accrediting Organization Participation 69\u003c\/p\u003e \u003cp\u003eThe American Society of Appraisers 69\u003c\/p\u003e \u003cp\u003eThe Appraisal Institute 70\u003c\/p\u003e \u003cp\u003eThe Institute of Business Appraisers 70\u003c\/p\u003e \u003cp\u003eThe National Association of Valuers and Analysts 71\u003c\/p\u003e \u003cp\u003eThe American Institute of Certified Public Accountants 71\u003c\/p\u003e \u003cp\u003eBeing a Good Communicator 71\u003c\/p\u003e \u003cp\u003eOffering a Neutral, Detached Opinion of Value 71\u003c\/p\u003e \u003cp\u003eAvoiding the Bias Perception 71\u003c\/p\u003e \u003cp\u003eSelecting the Expert Who Prepared the Appraisal That Supports the Tax Reporting Position 72\u003c\/p\u003e \u003cp\u003eEarly and Significant Appraiser Involvement 72\u003c\/p\u003e \u003cp\u003eAppraiser Scheduling and Availability 73\u003c\/p\u003e \u003cp\u003eCorrecting Errors in the Expert’s Report 73\u003c\/p\u003e \u003cp\u003e“Skeletons in the Closet” 73\u003c\/p\u003e \u003cp\u003eAcquainting the Expert with the Cast of Characters and Venue 73\u003c\/p\u003e \u003cp\u003eAttorney Comprehension of Expert Opinions 74\u003c\/p\u003e \u003cp\u003ePlanning the Testimony 74\u003c\/p\u003e \u003cp\u003eExpert Testimony Preparation 74\u003c\/p\u003e \u003cp\u003eConclusion 75\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 From Daubert to Boltar 76\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 76\u003c\/p\u003e \u003cp\u003eStandard of Admissibility for Expert Witness Testimony—The Federal Rules of Evidence 76\u003c\/p\u003e \u003cp\u003e\u003ci\u003eDaubert \u003c\/i\u003eand Its Progeny in Courts Other than the Tax Court 77\u003c\/p\u003e \u003cp\u003e\u003ci\u003eBoltar \u003c\/i\u003eas the Modern Incarnation of \u003ci\u003eDaubert \u003c\/i\u003ein the Tax Court 81\u003c\/p\u003e \u003cp\u003e\u003ci\u003eDaubert \u003c\/i\u003eChallenges Generally 82\u003c\/p\u003e \u003cp\u003eIllustrations of \u003ci\u003eDaubert \u003c\/i\u003eFactors in Practice 83\u003c\/p\u003e \u003cp\u003eFactor 1: Has the theory or technique been tested? 83\u003c\/p\u003e \u003cp\u003eFactor 2: Has the theory or technique been subjected to peer review and publication? 84\u003c\/p\u003e \u003cp\u003eFactor 3: Is there a known or potential rate of error or standards for the theory or technique applied? 86\u003c\/p\u003e \u003cp\u003eFactor 4: Has the theory or technique gained general acceptance? 88\u003c\/p\u003e \u003cp\u003eFactor 5: Is the expert testifying about matters growing naturally and directly out of research conducted independent of the litigation? 90\u003c\/p\u003e \u003cp\u003eFactor 6: Has the expert unjustifiably extrapolated from an accepted premise to an unfounded conclusion? 93\u003c\/p\u003e \u003cp\u003eFactor 7: Has the expert adequately accounted for obvious alternative explanations? 95\u003c\/p\u003e \u003cp\u003eFactor 8: Is the expert being as careful as he would be in his regular professional work? 96\u003c\/p\u003e \u003cp\u003eFactor 9: Is the field or expertise claimed by the expert known to reach reliable results for the type of opinion the expert would give? 97\u003c\/p\u003e \u003cp\u003eFactor 10: Has the theory or method offered by the expert been put to any non-judicial use? 97\u003c\/p\u003e \u003cp\u003eFactor 11: Whether the expert’s opinion fails to square with a judge’s opinion and common sense 97\u003c\/p\u003e \u003cp\u003eConclusion 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Discovery of Expert Material 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 99\u003c\/p\u003e \u003cp\u003eOverview of Discovery 99\u003c\/p\u003e \u003cp\u003eImportant Limitations on Discovery 100\u003c\/p\u003e \u003cp\u003eThe Attorney–Client Privilege 100\u003c\/p\u003e \u003cp\u003eWork Product 101\u003c\/p\u003e \u003cp\u003eUnfairness Doctrine 102\u003c\/p\u003e \u003cp\u003eThe IRS’s Summons Authority 102\u003c\/p\u003e \u003cp\u003eProcedures with Respect to Expert Witnesses Prepared in Connection with Litigation 103\u003c\/p\u003e \u003cp\u003eDiscovery in the Courts 103\u003c\/p\u003e \u003cp\u003eTax Court 104\u003c\/p\u003e \u003cp\u003eGeneral Provisions Regarding Discovery 105\u003c\/p\u003e \u003cp\u003eInterrogatories 107\u003c\/p\u003e \u003cp\u003eProduction of Documents 108\u003c\/p\u003e \u003cp\u003eDepositions 110\u003c\/p\u003e \u003cp\u003eAdmissions 112\u003c\/p\u003e \u003cp\u003eU.S. District Courts 113\u003c\/p\u003e \u003cp\u003eGeneral Provisions Regarding Discovery 113\u003c\/p\u003e \u003cp\u003eInterrogatories 117\u003c\/p\u003e \u003cp\u003eProduction of Documents, Electronically Stored Information, and Other Similar Items 117\u003c\/p\u003e \u003cp\u003eDepositions 118\u003c\/p\u003e \u003cp\u003eAdmissions 119\u003c\/p\u003e \u003cp\u003eCourt of Claims 119\u003c\/p\u003e \u003cp\u003eExpert Should Be Present at Opposing Expert’s Deposition 119\u003c\/p\u003e \u003cp\u003eConclusion 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9\u003c\/b\u003e \u003cb\u003eExpert Appraisal Reports 120\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 120\u003c\/p\u003e \u003cp\u003eValuation Standards 120\u003c\/p\u003e \u003cp\u003eRevenue Ruling 59-60 121\u003c\/p\u003e \u003cp\u003eUSPAP Generally 122\u003c\/p\u003e \u003cp\u003eCompliance with USPAP 122\u003c\/p\u003e \u003cp\u003eNoncompliance with USPAP Does Not Render an Expert Report Unreliable 122\u003c\/p\u003e \u003cp\u003eAppraisal Reports Generally 122\u003c\/p\u003e \u003cp\u003eFair Market Value 123\u003c\/p\u003e \u003cp\u003eContents of the Appraisal Report 123\u003c\/p\u003e \u003cp\u003eTable of Contents 123\u003c\/p\u003e \u003cp\u003eExecutive Summary or Cover Letter 123\u003c\/p\u003e \u003cp\u003eBody of Report 124\u003c\/p\u003e \u003cp\u003eIdentifying the Retaining Party and Other Intended Users 124\u003c\/p\u003e \u003cp\u003eType of Appraisal 125\u003c\/p\u003e \u003cp\u003eStandard of Value and Source 125\u003c\/p\u003e \u003cp\u003eEffective Date of the Appraisal and the Date of the Report 126\u003c\/p\u003e \u003cp\u003ePurpose of the Appraisal and Its Intended Use 128\u003c\/p\u003e \u003cp\u003eSummary of the Scope of Work 128\u003c\/p\u003e \u003cp\u003eSummary of Information Considered 129\u003c\/p\u003e \u003cp\u003eDescribing the Subject Property, the Type of Asset, the Interest Valued, and Geographic Data 131\u003c\/p\u003e \u003cp\u003eHow Title Is Held 132\u003c\/p\u003e \u003cp\u003eRestrictions, Hypotheticals, and Limiting Conditions 132\u003c\/p\u003e \u003cp\u003eHighest and Best Use 132\u003c\/p\u003e \u003cp\u003eValuation of the Subject Property 132\u003c\/p\u003e \u003cp\u003eSummary of Approaches Utilized 134\u003c\/p\u003e \u003cp\u003eReconciliation 135\u003c\/p\u003e \u003cp\u003eConsider a Regression Analysis 135\u003c\/p\u003e \u003cp\u003eConclusion of Value 136\u003c\/p\u003e \u003cp\u003eAppraiser’s Signature 136\u003c\/p\u003e \u003cp\u003eSigned Certification 136\u003c\/p\u003e \u003cp\u003eAddenda 138\u003c\/p\u003e \u003cp\u003eWork File as Support for an Appraisal Report 138\u003c\/p\u003e \u003cp\u003eContents of Work File 138\u003c\/p\u003e \u003cp\u003eRetention Period 139\u003c\/p\u003e \u003cp\u003eConclusion 139\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Assessing the Quality of the Appraisal Report 140\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 140\u003c\/p\u003e \u003cp\u003eRequired Items Under the USPAP and Revenue Ruling 59-60 140\u003c\/p\u003e \u003cp\u003eMaking the Report Understandable to the Audience 142\u003c\/p\u003e \u003cp\u003eReplicability 142\u003c\/p\u003e \u003cp\u003eCompleteness 142\u003c\/p\u003e \u003cp\u003eInternal Consistency 142\u003c\/p\u003e \u003cp\u003eReconciliation 143\u003c\/p\u003e \u003cp\u003eRegression Analysis 143\u003c\/p\u003e \u003cp\u003eForecasting Future Results 144\u003c\/p\u003e \u003cp\u003eEconomic and Industry Sections 144\u003c\/p\u003e \u003cp\u003eSupporting Exhibits 144\u003c\/p\u003e \u003cp\u003eComply with Applicable Court Rules 145\u003c\/p\u003e \u003cp\u003eThe Tax Court 145\u003c\/p\u003e \u003cp\u003eThe District Courts 146\u003c\/p\u003e \u003cp\u003eConclusion 146\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Concurrent Evidence: A Novel Approach to Expert Testimony 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 147\u003c\/p\u003e \u003cp\u003eA New Approach to Expert Testimony 148\u003c\/p\u003e \u003cp\u003eOur Long and Deep Distrust of Partisan Experts 148\u003c\/p\u003e \u003cp\u003eCourt-Appointed Experts 151\u003c\/p\u003e \u003cp\u003eHeating Up the Tub: The Concurrent Evidence Method 152\u003c\/p\u003e \u003cp\u003eExpert Bias 155\u003c\/p\u003e \u003cp\u003eForeign Court Experiences 155\u003c\/p\u003e \u003cp\u003eAmerican Experience with Concurrent Experts 157\u003c\/p\u003e \u003cp\u003eSuggested Four-Stage Hot Tub Approach for Tax Court Judges 159\u003c\/p\u003e \u003cp\u003eStage One: Pretrial Expert Meeting and Joint Report 160\u003c\/p\u003e \u003cp\u003eStage Two: The Expert Oath 161\u003c\/p\u003e \u003cp\u003eStage Three: The Trial Hot Tub Conversation 161\u003c\/p\u003e \u003cp\u003eStage Four: Cross-Examination and Rebuttal 163\u003c\/p\u003e \u003cp\u003eCommon Misperceptions of the Concurrent Witness Model 164\u003c\/p\u003e \u003cp\u003eMyth 1: Concurrent Testimony Replaces the Traditional Model 164\u003c\/p\u003e \u003cp\u003eMyth 2: The Consent of Both Parties Is Needed 164\u003c\/p\u003e \u003cp\u003eMyth 3: More Work Is Created for the Trier of Fact 164\u003c\/p\u003e \u003cp\u003eMyth 4: Concurrent Evidence Is Received Off the Record 165\u003c\/p\u003e \u003cp\u003eMyth 5: The Concurrent Witness Model Is an Auction 165\u003c\/p\u003e \u003cp\u003eMyth 6: The Lawyers Lose All Control in the Courtroom 165\u003c\/p\u003e \u003cp\u003eMyth 7: Hot Tubbing Is Prevalent in Tax Cases 165\u003c\/p\u003e \u003cp\u003ePractical Benefits and Claimed Drawbacks 166\u003c\/p\u003e \u003cp\u003eConclusion 169\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Penalties Associated with Faulty Appraisals 170\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 170\u003c\/p\u003e \u003cp\u003eThe Importance and Prevalence of Penalties in Modern-Day Appraisal Practice 170\u003c\/p\u003e \u003cp\u003eFramework for Examination 171\u003c\/p\u003e \u003cp\u003eAccuracy-Related Penalties Possibly Applicable to Client–Taxpayers 171\u003c\/p\u003e \u003cp\u003eThe Substantial Valuation Misstatement Penalty 172\u003c\/p\u003e \u003cp\u003eImposition of the Penalty 172\u003c\/p\u003e \u003cp\u003eSubstantial Valuation Misstatement Penalty Applies on a Property-by-Property Basis 172\u003c\/p\u003e \u003cp\u003eDollar Limitation for Substantial Valuation Misstatements 173\u003c\/p\u003e \u003cp\u003eSubstantial Valuation Misstatements and Pass-Through Entities 173\u003c\/p\u003e \u003cp\u003eIncrease in Penalty Rate for Gross Valuation Misstatements 174\u003c\/p\u003e \u003cp\u003eDefenses 174\u003c\/p\u003e \u003cp\u003eThe Gross Valuation Misstatement Penalty 176\u003c\/p\u003e \u003cp\u003eGross Valuation Misstatement Applies on a Property-by-Property Basis 177\u003c\/p\u003e \u003cp\u003eDollar Limitation for Gross Valuation Misstatements 177\u003c\/p\u003e \u003cp\u003eGross Valuation Misstatements and Pass-Through Entities 177\u003c\/p\u003e \u003cp\u003eElimination of Reasonable Cause Exception 178\u003c\/p\u003e \u003cp\u003eThe Applicability of the Gross Valuation Misstatements to Transactions Determined to Lack Economic Substance 178\u003c\/p\u003e \u003cp\u003eEstate or Gift Tax Valuation Understatements 180\u003c\/p\u003e \u003cp\u003eCivil Penalties Potentially Applicable to Appraisers 180\u003c\/p\u003e \u003cp\u003eThe Section 6695A Accuracy-Related Penalty 180\u003c\/p\u003e \u003cp\u003eThe Statute 181\u003c\/p\u003e \u003cp\u003eStatute of Limitations and Collection of Penalty 182\u003c\/p\u003e \u003cp\u003eAffirmative Defenses 182\u003c\/p\u003e \u003cp\u003eReferral for Professional Sanctions 182\u003c\/p\u003e \u003cp\u003ePaid Preparer Penalty—Section 6694 182\u003c\/p\u003e \u003cp\u003eThe Statute 183\u003c\/p\u003e \u003cp\u003eAppraisers as Paid Return Preparers 185\u003c\/p\u003e \u003cp\u003e\u003ci\u003eDe Minimis \u003c\/i\u003eException 185\u003c\/p\u003e \u003cp\u003eAffirmative Defenses 186\u003c\/p\u003e \u003cp\u003eAiding and Abetting an Understatement of Tax—The Section 6701 Penalty 186\u003c\/p\u003e \u003cp\u003eThe Statute 187\u003c\/p\u003e \u003cp\u003eCoordination with Other Penalties 188\u003c\/p\u003e \u003cp\u003eInjunctions against Appraisers 188\u003c\/p\u003e \u003cp\u003eEffect of Imposition of the Section 6701 Penalty 188\u003c\/p\u003e \u003cp\u003eProfessional Sanctions 189\u003c\/p\u003e \u003cp\u003eCircular 230 Generally 189\u003c\/p\u003e \u003cp\u003eDisqualification of Appraisers under Circular 230 189\u003c\/p\u003e \u003cp\u003eMonetary Penalty 189\u003c\/p\u003e \u003cp\u003eConclusion 190\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Attorney Involvement 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 191\u003c\/p\u003e \u003cp\u003eFramework for Examination 191\u003c\/p\u003e \u003cp\u003eAttorney Involvement in Selecting the Appraiser 192\u003c\/p\u003e \u003cp\u003eAn Appraiser’s Ability to Withstand a \u003ci\u003eDaubert \u003c\/i\u003eChallenge 193\u003c\/p\u003e \u003cp\u003eThe Importance of Having the Attorney Engage the Appraiser 193\u003c\/p\u003e \u003cp\u003eAttorney Involvement in the Appraisal Process 194\u003c\/p\u003e \u003cp\u003eThe Fact-Gathering Process 194\u003c\/p\u003e \u003cp\u003eThe Report Preparation Process 195\u003c\/p\u003e \u003cp\u003eThe Review Process 196\u003c\/p\u003e \u003cp\u003eSanctions for Improper Attorney Assistance 197\u003c\/p\u003e \u003cp\u003eThe Tax Preparation Process 198\u003c\/p\u003e \u003cp\u003eCoordinating the Attorney’s and the Appraiser’s Involvement in Negotiations with Tax Authorities 198\u003c\/p\u003e \u003cp\u003eAttorney Involvement in Litigation Where Expert Reports Will Be Submitted 199\u003c\/p\u003e \u003cp\u003eDiscovery and the Expert Appraiser 200\u003c\/p\u003e \u003cp\u003eSubmitting the Expert Appraisal Report to the Court 200\u003c\/p\u003e \u003cp\u003eMotions \u003ci\u003ein Limine \u003c\/i\u003e201\u003c\/p\u003e \u003cp\u003eRebuttal Reports 202\u003c\/p\u003e \u003cp\u003eQualifying the Appraiser as an Expert and Satisfying \u003ci\u003eDaubert \u003c\/i\u003e203\u003c\/p\u003e \u003cp\u003eCross-Examination and Rehabilitation 203\u003c\/p\u003e \u003cp\u003eCross-Examination 203\u003c\/p\u003e \u003cp\u003eRehabilitating the Expert Witness 203\u003c\/p\u003e \u003cp\u003eConclusion 204\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Common Errors with Appraisal Reports and How to Avoid Them 205\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 205\u003c\/p\u003e \u003cp\u003eCommon Defects with Appraisals 205\u003c\/p\u003e \u003cp\u003eDefect 1: Untimely Appraisal Report 206\u003c\/p\u003e \u003cp\u003eRequirement and Error 206\u003c\/p\u003e \u003cp\u003eRemedy 206\u003c\/p\u003e \u003cp\u003eDefect 2: Inadequate Description of Property 207\u003c\/p\u003e \u003cp\u003eRequirement and Error 207\u003c\/p\u003e \u003cp\u003eRemedy 207\u003c\/p\u003e \u003cp\u003eDefect 3: Failing to Analyze Agreements and Restrictions with Respect to the Property 208\u003c\/p\u003e \u003cp\u003eRequirement and Error 208\u003c\/p\u003e \u003cp\u003eRemedy 208\u003c\/p\u003e \u003cp\u003eDefect 4: Qualifications Not Disclosed 209\u003c\/p\u003e \u003cp\u003eRequirement and Error 209\u003c\/p\u003e \u003cp\u003eRemedy 209\u003c\/p\u003e \u003cp\u003eDefect 5: No Statement That Appraisal Was Prepared for Federal Tax Purposes 210\u003c\/p\u003e \u003cp\u003eRequirement and Error 210\u003c\/p\u003e \u003cp\u003eRemedy 210\u003c\/p\u003e \u003cp\u003eDefect 6: Wrong Measure of Value 210\u003c\/p\u003e \u003cp\u003eRequirement and Error 210\u003c\/p\u003e \u003cp\u003eRemedy 212\u003c\/p\u003e \u003cp\u003eDefect 7: Lack of Reconciliation 213\u003c\/p\u003e \u003cp\u003eRequirement and Error 213\u003c\/p\u003e \u003cp\u003eRemedy 214\u003c\/p\u003e \u003cp\u003eDefect 8: Consideration of Subsequent Events 215\u003c\/p\u003e \u003cp\u003eRequirement and Error 215\u003c\/p\u003e \u003cp\u003eRemedy 216\u003c\/p\u003e \u003cp\u003eDefect 9: Tax-Affecting S Corporations 216\u003c\/p\u003e \u003cp\u003eRequirement and Opportunity for Error 216\u003c\/p\u003e \u003cp\u003eRemedy 217\u003c\/p\u003e \u003cp\u003ePotential Defect 10: Failure to Include a Regression Analysis 217\u003c\/p\u003e \u003cp\u003eConclusion 218\u003c\/p\u003e \u003cp\u003eTable of Cases 219\u003c\/p\u003e \u003cp\u003eAbout the Authors 223\u003c\/p\u003e \u003cp\u003eIndex 225\u003c\/p\u003e    \u003cp\u003e\u003cb\u003eMICHAEL R. DEVITT, CPA, JD, MS,\u003c\/b\u003e is Professor-in-Residence at the University of San Diego Law School. He was managing partner of a law firm where he practiced complex civil litigation in various jurisdictions around the U.S. and lead counsel in several high-profile cases dealing with fraudulent financial reporting, which have resulted in hundreds of millions of dollars in combined recoveries. He is a frequent lecturer on evidence, financial reporting, accounting, litigation, ethics and other topics. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eLAWRENCE A. SANNICANDRO, LLM, JD, MBA,\u003c\/b\u003e is a tax controversy and litigation attorney with McCarter \u0026amp; English, LLP. He regularly represents clients in audits before the IRS Office of Appeals, and in litigation before the United States Courts of Appeals, the United States Tax Court, the United States Court of Federal Claims, and United States District Courts. Prior to entering private practice, Mr. Sannicandro served as a law clerk for the United States Tax Court, and before that, as an attorney for the IRS. Mr. Sannicandro has written extensively on tax practice and procedure.      \u003c\/p\u003e\u003cp\u003eOne cannot overstate the significance of valuations to the system of taxation in the U.S. or the complexity of the rules and technical requirements governing their proper performance. So seriously does the federal government take the issue and the billions of dollars at stake, that approximately 340 sections of the Internal Revenue Code require taxpayers to make fair market value determinations in order to self-report, and for the IRS to assess, tax liabilities. Many provisions of the law require appraisals to support reporting positions, and in many cases, Congress has enacted technical and specific requirements with which appraisers, tax professionals, and taxpayers must comply for an appraisal to be respected. For its part, the IRS has developed a veritable arsenal of sophisticated techniques for challenging the validity of valuations. \u003c\/p\u003e\u003cp\u003eAn indispensable addition to the reference shelves of appraisers and tax professionals, this book was written by a uniquely well-qualified author team comprising two distinguished attorneys\/tax professionals. An invaluable source of information, insight, and guidance, it identifies the law, analyzes the cases, discusses potential pitfalls, and provides reliable solutions to virtually every problem that can arise with the valuation process. \u003c\/p\u003e\u003cp\u003eWhat constitutes a qualified appraisal? Who is a \"qualified appraiser\" and how does one become qualified? How do appraisals for various types of properties, businesses, or other assets differ? Is it a good idea for tax professionals and appraisers to develop cross-disciplinary skills in valuation and tax, and how do the rules concerning expert witnesses bear on this question? These are just a few of the questions for which appraisers and tax professionals will find the answers they need in order to confidently comply with the law and produce work that meets the latest standards. \u003c\/p\u003e\u003cp\u003eEstates, gifts, charitable contributions, income taxes, and more are covered in detail, with expert guidance on the interpretation and application of relevant regulations. Since appraisers often are called upon to provide expert testimony in court, the authors explore various approaches, including \"hot-tubbing,\" an increasingly important technique that eliminates the appearance of bias and helps mitigate the adversarial nature of such cases. Numerous cases are dissected as they relate to existing appraisal laws. \u003c\/p\u003e\u003cp\u003eThe ever-evolving regulations concerning qualified appraisers and qualified appraisals have given rise to much confusion, litigation, and no end of controversy with the tax authorities over the past decade. This book acknowledges the problems associated with appraisals and offers solutions to help professionals produce work the IRS and courts will accept now and in the years ahead.      \u003c\/p\u003e\u003cp\u003e\u003cb\u003eAn Indispensable Source of Information, Insight, and Practical Solutions for Appraisers, Tax Professionals, and Attorneys\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eIn order for an appraisal to satisfy the requirements set forth by Congress, the IRS, and the U.S. Department of the Treasury it must be performed by an appraiser qualified to appraise the specific type of property or asset in question. What constitutes a qualified appraisal? Who is a \"qualified appraiser\"? How do appraisals for various types of properties or other assets differ? This book systematically answers these, and every question appraisers, tax professionals, and attorneys may have concerning the complex laws governing appraisals and valuation reports. \u003c\/p\u003e\u003cul\u003e \u003cli\u003eMake sense of the laws and regulations surrounding qualified appraisals and qualified appraisers\u003c\/li\u003e \u003cli\u003eDiscover proven solutions to virtually every problem that can arise with appraisal reports, from a U.S. tax perspective\u003c\/li\u003e \u003cli\u003eBenefit from the knowledge and experience of distinguished authorities on expert testimony\u003c\/li\u003e \u003cli\u003eExplore cases illustrating the nuances and potential pitfalls involved in the application of appraisal law\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eQualified Appraisals and Qualified Appraisers\u003c\/i\u003e gives you the answers you need to fully and confidently comply with the law and produce work that meets the latest standards.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989892972773,"sku":"NP9781119437574","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119437574.jpg?v=1761785817","url":"https:\/\/k12savings.com\/products\/qualified-appraisals-and-qualified-appraisers-isbn-9781119437574","provider":"K12savings","version":"1.0","type":"link"}