Tax News

CCH (cch.taxgroup.com) reports:

  An IRS summons seeking the appraisal workfile prepared by an appraiser who submitted a valuation regarding a conservation easement claimed as a charitable deduction was quashed. The IRS failed to establish its prima facie case for enforcement to refute the protection afforded to the workfile under the attorney-client privilege and the work product doctrine. The content of the workfile was protected because it was prepared at the direction of the donors' law firm in anticipation of future litigation regarding the value of the easement to aid the firm in providing legal advice to the donors. Although the donors filed the final appraisal report with their tax returns, public disclosure of the final report did not open the appraiser's workfile to discovery by the IRS. Moreover, discovery to clarify the appraisal was not in good faith. The IRS did not explain why the final appraisal report was insufficient to explain the appraiser's conclusions and why the IRS continued to have an interest in the workfile even after the taxpayers had consented to an assessment that disallowed the deduction based on the appraisal.

M. Richey, DC Ida., 2009-1 USTC ¶50,274

Other References:

 
Code Sec. 7602

  CCH Reference - 2009FED ¶42,827.43

  CCH Reference - 2009FED ¶42,827.5036

  CCH Reference - 2009FED ¶42,827.5068

  Tax Research Consultant

  CCH Reference - TRC IRS: 21,402