Document Type
Article
Publication Date
2021
Publication Citation
96 Notre Dame Law Review 1495 (2021)
Abstract
Valuation issues have long posed challenges for the U.S. federal tax system. This is not just because of questions about what technique will most accurately value particular types of property. A key problem for tax administration is that taxpayers have a financial incentive to claim erroneous, self-serving valuations. This Essay analyzes tax valuation through this tax compliance lens. In so doing, it highlights the importance that third parties to the taxpayer-government relationship act at arm’s length from the taxpayer. It also explains why penalties are insufficient to deter erroneous self-reported valuations. The Essay also draws on the tax compliance perspective to make some preliminary observations about valuation methodologies.
Recommended Citation
Lederman, Leandra, "Valuation as a Challenge for Tax Administration" (2021). Articles by Maurer Faculty. 2966.
https://www.repository.law.indiana.edu/facpub/2966