For what it’s worth: Valuation in the courts – IRS plays role reversal in charitable contribution case

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Abstract: In charitable contribution cases, taxpayers want property appraised as high as possible to maximize their deductions. Meanwhile, the IRS seeks low appraisals for assets donated to charities to maximize tax receipts. But, in a recent charitable contribution case, the IRS reversed its usual role, arguing in favor of hefty discounts for lack of control and marketability. The result may be surprising. Citation: Bergquist, et al v. Commissioner, 131 T.C. No. 2, July 22, 2008.