What Percent Of Estate Valuations Are Not Accepted by the IRS?

The Internal Revenue Service (IRS) does not provide an official percentage of estate valuations that are not accepted. However, it is known that the IRS conducts estate tax audits to ensure that taxpayers are accurately reporting the value of their estates.

According to a report by the Treasury Inspector General for Tax Administration, the IRS examined approximately 8,600 estate tax returns in fiscal year 2019 and recommended adjustments to about 28% of them. This suggests that a significant percentage of estate valuations may not be fully accepted by the IRS.

It’s important to note that the reasons for adjustments can vary widely and may not necessarily indicate that the taxpayer intentionally underreported the value of their estate. In some cases, the adjustments may result from differences in the valuation methods used by the taxpayer and the IRS.