The Pension Protection Act of 2006 is currently on its way to President Bush’s desk, thanks to its passage by the House and, just this past Thursday, the Senate. Most sources expect President Bush to sign the bill over the current Congressional recess.
Of note to business appraisers: The new law enacts appraisal reform provisions, including the definition of “qualified appraisers” and penalties for incorrect valuations—effective immediately. This means the IRS and other federal agencies will be under considerable pressure to implement the new regs, “perhaps through the promulgation of temporary regulations,” says Peter Barash (Peter Barash Associates), the ASA representative on Capitol Hill. “ASA needs to lead the effort to ensure that [the] IRS does this in an appropriate way.”
For the House version of the bill (as enrolled/agreed to by the Senate), go to http://thomas.loc.gov/ and enter "Pension Protection Act of 2006" in the search term. You may want to review section 6695A, among others, “Substantial and Gross Valuation Misstatements Attributable to Incorrect Appraisals.”
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