The BV community has been buzzing about the recent Kohler case (Kohler v. Commissioner, U.S. Tax Court, July 25, 2006). In particular, the valuation reports by Robert Schweihs, ASA, CBA (Willamette Management Associates, Chicago) and Roger Grabowski, ASA (Duff & Phelps, Chicago) for the taxpayer have received “glowing tributes,” according to a BVWire™ subscriber.
The IRS report didn’t fare so well. “[The expert’s] report…was not submitted in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP),” the Tax Court said, and “did not provide the customary USPAP certification.”
“You can bet the IRS is reading that case, too,” said Carla Glass, CFA, FSA (American Appraisal Associates, Dallas) at the most recent public meeting of the Appraisal Standards Board in Denver. Odds are that after Kohler, the IRS has added “USPAP certification” to its review checklist of all valuation reports. For a free copy of the case abstract, originally appearing in the Business Valuation Update™, click here.
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