### Question
How does the law define gross valuation overstatement?


### Answer
Under *26 U.S.C. § 6700*, **gross valuation overstatement** is defined as:

> any statement as to the value of any property or services if—


(A) the value so stated exceeds 200 percent of the amount determined to be the correct valuation, and


(B) the value of such property or services is directly related to the amount of any deduction or credit allowable under chapter 1 to any participant

#### Citation:
  - *26 U.S.C. § 6700*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter B-Assessable Penalties > PART I-GENERAL PROVISIONS**

