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    Washington Report and State News Apr 2, 2023

    AI Supports IRS Crackdown on Syndicated Conservation Easement Transactions

    The Appraisal Institute noted in both a comment to the IRS and in testimony before the agency that it supports the IRS’s proposed rule to curb syndicated conservation easement transactions. However, because the IRS lumped appraisals in with other promotional or sales activity that is more applicable to non-appraisers, AI reminded the agency that “appraisers do not provide ‘advice’ as independent third parties when producing an appraisal. It is simply a value opinion.” 

    Additionally, AI asked that any final rule “provide(s) sufficient guidance to appraisers on the application of any material advisor requirements,” specifically stating that appraisers must identify the client and any intended users of the appraisal, which would help align the parlance of IRS rules with appraisal standards and regulation.