What is a qualified appraisal for estate tax purposes?, Does the IRS require a date of death appraisal?, Is an appraisal required for an estate? R.E.I Valuations . What is a qualified appraisal for estate tax purposes?, Does the IRS require a date of death appraisal?, Is an appraisal required for an estate? R.E.I Valuations .

Qualified Appraisal IRS Requirements for Form 706 in Atlanta, Georgia (2026): What Every Estate Needs to Know Before Filing

If you're submitting Form 706 to the IRS in 2026 to claim a step-up in basis on inherited real estate, your appraisal must meet strict qualified appraisal IRS requirements. These standards aren’t optional — and the IRS is actively increasing audit scrutiny on estate filings, especially in Georgia. Executors, CPAs, and heirs in Atlanta and surrounding counties need to ensure their reports are IRS-compliant — or risk costly penalties, delays, or legal exposure.

For Georgia-based estates, heirs, CPAs, and fiduciaries need to ensure their appraisals are prepared by a qualified appraiser and formatted to IRS expectations — or risk penalties, delays, and audit exposure.

Here’s what you need to know before filing.

Michelle inherited her father’s home in Fulton County and submitted Form 706 with what she thought was a valid appraisal — a restricted-use, two-page document she found online for $200.

Months later, the IRS flagged her return. The appraisal failed to meet both Form 706 appraisal requirements and qualified appraisal IRS standards. Michelle had to refile, pay for a second report, and delay probate distribution for six more weeks.

What Actually Counts as a Qualified Appraisal for Form 706?

This is where most people get it wrong.

The IRS has two distinct sets of expectations:

  1. Who prepares the appraisal — that’s where the qualified appraisal IRS requirements come in

  2. How the report is structured — that’s governed by Form 706 appraisal requirements

Let’s break both down.

Step 1: IRS Definition of a “Qualified Appraiser”

To meet qualified appraisal IRS requirements, your appraiser must:

For Georgia estates: The appraiser must be licensed through the Georgia Real Estate Appraisers Board, with credentials that can be publicly verified.

Step 2: The Appraisal Must Follow Form 706 Requirements

According to the IRS, a Form 706 appraisal must:

  • Be completed as of the date of death (retrospective effective date)

  • Use Fair Market Value as defined in IRS Pub. 561

  • Include detailed comps, adjustments, and valuation narrative

  • Be full and USPAP-compliant — not restricted-use

So will the IRS accept a restricted-use appraisal report?
No. Restricted reports do not meet the depth, format, or multi-user standards required for IRS submissions. This is especially critical in estate tax cases where filings are subject to audit or cross-verification.

Step 3: Recency Matters — Audit Risk Has Increased (2024–2025)

Over the past year, the IRS has ramped up scrutiny on estate tax filings — particularly those involving large step-ups in basis or undervalued real estate assets. Many executors are unaware that:

Appraisals that fail the qualified appraisal IRS standards or Form 706 formatting may be outright rejected.

Step 4: Avoid IRS Penalties by Getting It Right the First Time

Here’s what’s at stake:

  • 30% penalties for substantial undervaluation

  • Refiling delays and probate stalls

  • IRS correspondence requesting supplemental documentation

  • Exposure to disputes between heirs or legal counsel

Submitting the wrong report is more than a paperwork issue — it could cost your estate thousands in taxes or months in delays.

Step 5: Hire a Firm That Specializes in IRS-Compliant Valuation

At REI Valuations & Advisory, we specialize in IRS-facing estate appraisals across metro Atlanta and surrounding Georgia counties. Our reports are:

Prepared by licensed, USPAP-compliant appraisers

Formatted for Form 706 submissions and IRS review

Backed by documentation, commentary, and support if the IRS flags your file

We don’t just appraise homes — we help protect estates from audit exposure.

Book Your Free IRS Appraisal Fit Call (Limited January Intake)

Because of heightened IRS scrutiny and tight tax deadlines, we’re limiting our intake of Form 706 estate cases to just 7 per month.

Bonus Offer: Mention this blog and receive a free “IRS Valuation Summary” PDF ($95 value) to share with your attorney or CPA.

Book Your IRS Appraisal Fit Call Now
No pressure. Just clear answers on what type of report you need, whether you qualify, and how fast we can get it done.

January 8 2026 7:56pm

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