Just last week the IRS released Notice 2006-96, its transitional guidance on the new “qualified appraisal” and “qualified appraiser” provisions of the Pension Protection Act of 2006 (see BVWire #47-4). The speed of the Service’s response surprised even its own: “I wasn’t expecting this to come out so quickly,” said Brenda Woolbert, CPA, CVA, an IRS Engineering supervisor, who spoke at the recent CICBV/ASA 2006 Conference in Toronto. “This was quite a surprise to me.”

Also a surprise: The interim guidelines specifically refer to USPAP (Uniform Standards of Professional Appraisal Practice) to define “qualified appraisal” and related terms. In the past, “the IRS has avoided blessing any particular association or standard,” Woolbert said, but “clearly, USPAP will set the benchmarks going forward.”

Not so surprising: In answer to an attendee’s question, Woolbert opined that the new penalty provisions will not apply to IRS appraisers. The Service invites your comments on the transitional notice through January 17, 2007: click here for the full text.