Funding Changes at the IRS Affect How to Handle ValuationsFunding Changes at the IRS Affect How to Handle Valuations

The Internal Revenue Service has an estimated budget of $19.8 billion for fiscal year (FY) 2024—less than what was originally allocated under the Inflation Reduction Act but still a 50% increase from prior years. The IRS plans to use some of this money to hire new employees in the area of valuation. Here’s an overview of how the makeup of the valuation employees will change and the ramifications of those changes. You may want to counsel your experts on how to interact with the IRS on valuation issues.  

Plans for Valuation

On Sept. 16, 2022, the director of the IRS Engineering Program (where the real property appraisers, business valuers and other specialists are located) had a telephone call with practitioners in this area (including me)...