Exelon Corp. v. Commissioner – Attorney’s role in property valuation backfires

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Abstract: The key to a solid appraisal is the expert’s independence. Though it can sometimes be tempting to try to influence an appraiser’s conclusions, the potential consequences can be costly. This article summarizes a recent tax case where the Seventh Circuit Court of Appeals found that meddling by the taxpayer’s legal counsel in the appraisal process rendered the reports “useless,” leading to almost $90 million in underpayment penalties. A sidebar highlights limits on like-kind exchanges under the Tax Cuts and Jobs Act. Exelon Corp. v. Commissioner, 7th Cir., No. 17-2964, 17-2965, October 3, 2018