The Internal Revenue Service and the Treasury Department changed the IRS Manual, affecting the way the IRS reviews appraisals and impose a civil money penalty for misstatements in the appraisals, as per Section 6695A of the Internal Revenue Code.
This change reduces the number of individuals involved in the decision to impose a 6695A penalty.
Appraisers who do not follow the standards of valuation with due transparency and technical expertise will be directly affected and may involve their clients in tax and civil proceedings.