Page:United States Statutes at Large Volume 98 Part 1.djvu/742

 98 STAT. 694

PUBLIC LAW 98-369—JULY 18, 1984 "(c) VALUATION OVERSTATEMENT DEFINED.—For purposes of this section, there is a valuation overstatement if the value of any property, or the adjusted basis of any property, claimed on any return is 150 percent or more of the amount determined to be the correct amount of such valuation or adjusted basis (as the case may be)." (B) SPECIAL RULES FOR OVERSTATEMENT OF CHARITABLE

26 USC 6659.

DEDUCTION.—Section 6659 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: "(f) SPECIAL RULES FOR OVERSTATEMENT OF CHARITABLE DEDUCTION.— "(1) AMOUNT OF APPLICABLE PERCENTAGE.—In the case of any

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underpayment attributable to a valuation overstatement with respect to charitable deduction property, the applicable percentage for purposes of subsection (a) shall be 30 percent. "(2) LIMITATION ON AUTHORITY TO WAIVE.—In the case of any underpayment attributable to a valuation overstatement with respect to charitable deduction property, the Secretary may not waive any portion of the addition to tax provided by this section unless the Secretary determines that— "(A) the claimed value of the property was based on a qualified appraisal made by a qualified appraiser, and "(B) in addition to obtaining such appraisal, the taxpayer made a good faith investigation of the value of the contributed property. "(3) DEFINITIONS.—For purposes of this subsection— "(A) CHARITABLE DEDUCTION PROPERTY.—The term 'charitable deduction property' means any property contributed by the taxpayer in a contribution for which a deduction was claimed under section 170. For purposes of paragraph (2), such term shall not include any securities for which (as of the date of the contribution) market quotations are readily available on an established securities market. "(B) QUALIFIED APPRAISER.—The term 'qualified appraiser' means any appraiser meeting the requirements of the regulations prescribed under section 170(a)(1). "(C) QUALIFIED APPRAISAL.—The term 'qualified appraisal' means any appraisal meeting the requirements of the regulations prescribed under section 170(a)(1)." (2) EXTENSION OF INCORRECT VALUATION PENALTY TO ESTATE AND GIFT TAX.—

26 USC 6660. 26 USC 2001.


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(A) Subchapter A of chapter 68 (relating to additions to the tax and additional amounts) is amended by inserting after section 6659 the following new section: "SEC. 6660. ADDITION TO TAX IN THE CASE OF VALUATION UNDERSTATEMENT FOR PURPOSES OF THE ESTATE OR GIFT TAXES. "(a) ADDITION TO THE TAX.—In the case of any underpayment of a tax imposed by subtitle B (relating to estate and gift taxes) which is attributable to a valuation understatement, there shall be added to the tax an amount equal to the applicable percentage of the underpayment so attributed. "(b) APPLICABLE PERCENTAGE.—For purposes of subsection (a), the applicable percentage shall be determined under the following table:

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