Posted by Cochise on May 10, 2008 at 12:44:44:
It's Hammer Time! MAI, AI, Appraisal Institute, Colorado to lower the Hammer on the Appraisal Institute, and MAI appraisers for Fradulant Conservation Easements
Colorado to Increase Oversight on Conservation Easements; Allard Questions IRS
Colorado’s H.B. 1353 passed the House and is currently in the Senate Committee on Finance giving spark to the idea that it will pass the legislature in some form. The measure increases oversight on Conservation Easements and specifically conservation easement appraisals. The measure requires an appraiser who conducts a conservation easement appraisal to submit a copy of the appraisal to the Division of Real Estate. In addition, it creates a fee to be charged for each CE appraisal in order to support administrative costs.
The measure also authorizes the board to establish classroom education and experience requirements for an appraiser who prepares an appraisal for a conservation easement for which a tax credit is claimed.
It's Hammer Time! MAI, AI, Appraisal Institute, Colorado to lower the Hammer on the Appraisal Institute, and MAI appraisers for Fradulant Conservation Easements
For the full bill, visit
www.leg.state.co.us/clics/clics2008a/csl.nsf/fsbillcont3/2D63A8622BEF7696872573B0007E6F6E?Open&file=1353_ren.pdf.
In related news, in an April 16 hearing, Sen. Wayne Allard, R-Colo., questioned the Internal Revenue Service's past settlements on Colorado’s conservation easements. In mid-November the IRS began making settlement offers to a significant number of conservation easement donors under audit in Colorado. The settlements were only offered in those cases where the sole issue between the owner and the IRS was the valuation and, according to Allard’s understanding, the offers “generally fell into a bucket where the IRS stated only 30 percent, or 60 percent or 75 percent of the original value of the charitable donation was allowed.” According to IRS Commissioner Douglas Schulman, most people were offered close to 70 percent of their original claim.
In his response, Schulman disclosed that he had authorized more resources for appraisers to try to move the backlog through. “The people running this program have told me that they understand the frustration that you have around the length of time that this has taken and that they're not happy with the pace and would like to pick up the pace.”
Allard also questioned the criteria used to place different taxpayers into these various buckets and if the IRS indicated in writing to the donor how and why the IRS arrived at their decision. His comments came at an April 16 hearing on the fiscal 2009 budget for the IRS held by the Senate Appropriations Subcommittee on Financial Services.
Schulman said, “Regarding the exact criteria, I've talked to the team about the program. I'm four weeks into the job; I'd like to request if I could come back and talk with you. What I will tell you is I believe we need to move the backlog. I've requested and authorized to put some more appraisers onto these cases.”