The IRS requires that an appraisal be completed by a "Qualified Appraiser" for certain tax filing purposes.
According to IRS regulations a "Qualified Appraiser" is one who has earned an appraisal designation from a professional appraisal organization, has the appropriate education and experience, and performs appraisals on a regular basis. This definition is contained in Internal Revenue Bulletin 2006-46 and Notice 2006-96 regarding Section 170(f)(11) of the Internal Revenue Code, relating to the new definitions of "qualified appraisal" and "qualified appraiser."
Section 170(f)(11)(E)(i) states that a "qualified appraisal" is an appraisal that is (1) treated as a qualified appraisal under regulations or other guidance prescribed by the Secretary, and (2) conducted by a qualified appraiser in accordance with generally accepted appraisal standards and any regulations or other guidance prescribed by the Secretary.
A "qualified appraiser" as defined by Section 170(f)(11)(E)(ii) means an individual who (1) has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations prescribed by the Secretary, (2) regularly performs appraisals for which the individual receives compensation, and (3) meets such other requirements as may be prescribed by the Secretary in regulations or other guidance.Section 170(f)(11)(E)(iii) further provides that an individual will not be treated as a qualified appraiser unless that individual (1) demonstrates verifiable education and experience in valuing the type of property subject to the appraisal, and (2) has not been prohibited from practicing before the Internal Revenue Service by the Secretary under S 330(c) of Title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.
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