The answer for each of the four questions is no. Intended users are identified by the appraiser through communication with client and are not established based on who might receive or use the report.
The definition of intended user has a specific meaning in USPAP. In the context of the USPAP definition of intended user, the fact that the IRS, the court, an independent auditor, or the OCC in the above cases will use your report for review, audit, or other purposes does not automatically make them intended users. These parties receive the report through established processes of disclosure or regulation.
One way to understand the concept is to think about what the intended use is for each party. The appraiser must identify both the intended users and the intended use of the appraisal, because these two factors affect many aspects of the appraisal assignment, such as the appropriate scope of work
and the appropriate type of report.
In each case, the use of the report by these other parties is different from the intended use the appraiser identified, which was related to the client’s use. Such other parties may be evaluating the decision made by the appraiser’s client to obtain an appraisal, as well as the appraisal results,
and other matters of which the appraiser may not be aware. As an example, the client filing the estate tax return is using the appraisal as an indication of the amount to state on the tax form.
However, the IRS may use the appraisal report to determine whether the value reported on the tax return is adequately supported, whether the IRS agrees with the value, and/or whether the IRS should challenge the taxpayer because they disagree with the value.
