For people looking for a tax deduction, the options for charitable giving are almost endless, but in order to reduce IRS scrutiny, taxpayers need to document donations properly, review IRS regulations, and get donations appraised by a "qualified appraiser" when required by the tax code.

"The IRS is looking much more closely at charitable gifts, especially donations of clothes and household items as well as items of greater value," said Sandie Tropper, a Senior Accredited Appraiser member of the American Society of Appraisers. 

The IRS is now requiring that a "qualified appraiser" prepare a "qualified appraisal" for individual household items donated to charity which are worth more than $500.  This is true also for other donated items such as art and antiques that have a Fair Market Value of more than $5,000.  The difference this year notes the American Society of Appraisers, is that a new law, H.R. 4, which was passed and implemented in August, 2006, requires that these appraisals be done by a "qualified appraiser." 

"The best way to find a ‘qualified appraiser’ is to use an appraiser who is accredited by a national appraisal organization that complies with the Uniform Standards of Professional Appraisal Practice (USPAP)," said Tropper.

Taxpayers should also make sure they are submitting an appraisal that was prepared using the correct valuation method for charitable contributions. All appraisals done for the Internal Revenue Service conclude the fair market value of the item or items.  The fair market value is the amount that the item would sell for on the open market at the time of donation.  Fair market value takes into account the condition of the piece or pieces, the value of sales of similar properties at the time, and the market for those types of items.