Covenant Not to Compete Key to Intangible Asset Value

Business Valuation UpdateVol. 4 No. 10
Legal and Court Case Update
October 1998
8721 Accounting, Auditing, and Bookkeeping Services
541219 Other Accounting Services
federal taxation

William Norwalk, et al. v. CIR
T.C. Memo. 1998-279
July 30, 1998
US
Federal Court
United States Tax Court
Ruwe

Summary

The principal issue underlying these consolidated cases is the fair market value of the corporation's assets on the date of distribution.

See Also

William Norwalk, et al. v. CIR

The Tax Court concluded that without non-compete agreements executed in favor of the company, the goodwill in a professional accounting practice was the property of the accountant. Therefore, it rejected the IRS's position that goodwill was distributed t ...