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ASA Meets with IRS’s Office of Professional Responsibility to Discuss Circular 230, PPA Implementation, 6695A Safe Harbor, and PTIN Registration
9/1/2010 4:47:18 PM
Representatives from ASA met with the leadership of IRS’s Office of Professional Responsibility (OPR) on July 16 to discuss several issues pending before IRS that affect appraisers. ASA reiterated the need for timely resolution of all pending issues, and reiterated the professional qualifications of its members. Highlights from the meeting include: OPR confirmed that IRS’ soon-to-be-announced requirements for tax preparer identification number (PTIN) registrations and demonstrations of competency will not impact appraisers (unless they are also CPAs who prepare and sign return). ASA has consistently argued to the Service that appraisers should be exempt from the return preparer registration, testing, and education requirements of the new PTIN program notwithstanding the fact that appraisers can be considered nonsigning preparers under a very narrow and unlikely set of factual circumstances. The applicability of Circular 230 to appraisers was discussed, and concerns were expressed by OPR that they currently cannot pursue ethics sanctions against appraisers for 6695A violations, as they have not yet been given clear authority under the wording of Circular 230. OPR is working to clarify its authority through rulemaking. ASA again stressed the need for issuance of final definitions of “qualified appraiser” and “qualified appraisal”. Proposed final regulations have been under consideration for nearly 18 months, with no firm date for adoption of final regulations in sight. ASA also raised concerns over the absence of regulations regarding how appraisers can invoke the safe harbor defense to valuation misstatement claims under Code section 6695A. ASA acknowledged the hard work of the Office of Servicewide Penalties to rewrite Letter 4477 to address due process concerns ASA has raised in connection with the civil money penalty authority for valuation misstatements under 6695A. The representatives from ASA and OPR hope to meet again in the coming months as regulations are implemented in each of these critical areas.
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