Comparison of IRS and Taxpayer Experts As Stated by the Courts

BVResearch Pro
American Society of Appraisers Business Valuation Review™
Winter 2004 Volume 23, Issue 4 pp. 205-209
Michael A. Gregory, ASA, CVA
Robin P. Ruegg


The authors analyze comments documented by the courts on cases where experts from within the Internal Revenue Service testified and taxpayer experts testified on the same cases. This paper focuses on valuation issues. Note that this does not include all cases where experts testified since it includes only the subset where internal IRS experts testified. The results indicate an increasing trend by the courts to criticize both experts. This paper reviews the courts' comments and addresses implications for improvement. Two internal IRS studies are compared. The conclusions are very similar between both the original and second analyses. The courts more often than not continue to be silent relative to the quality of experts in their courts. However, when comments are made, the courts have tended to be more critical of experts over the last ten years. Experts should testify to assist the court in making a determination and not be an advocate for other than their expert opinion. Experts can serve their clients well by realizing that valuation is an art, and work towards issue resolution to better serve their clients and reduce the impacts of litigation.
Comparison of IRS and Taxpayer Experts As Stated by the Courts
PDF, Size: 248 KB

Copyright American Society of Appraisers

The information contained in this product is based on content obtained by ASA from sources considered to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. BVR and ASA accept no liability for the use of such information which is provided "AS IS" and with no warranties, express or implied.