Appraisers Not Subject to Tax Preparer Tests, Education Requirements
Real estate appraisers who do not prepare Internal Revenue Service Form 1040 series forms for compensation are not subject to tax preparer testing or education requirements, according to IRS officials participating in a July 18 Appraisal Institute webinar on IRS Appraisals.
The IRS recently had tried to require preparers of individual tax returns to register with the government and pass a test to prove their competence. However, it remained unclear as to whether real estate appraisers who sign Form 8283 when completing appraisals of non-cash charitable contributions would be subject to the new tax return preparer requirements. IRS officials confirmed that appraisers are not subject to the testing and education requirements.
However, appraisers must update and/or obtain a Personal Taxpayer Identification Number to complete Form 8283. When obtaining a PTIN number from the IRS website, appraisers need to look for a question that reads, “Do you prepare 1040 series for compensation?” By answering “no,” an appraiser will not become a registered tax return preparer and therefore not subject to testing and education requirements.
Visit the IRS website for more information on obtaining or updating PTIN numbers.
View the webinar on IRS Appraisals.