BVWire News


IRS addresses some concerns of valuators at Sec. 2704 regs hearing

IRS and Treasury officials on the hearing panel felt compelled to make a few remarks in response to the strong concerns of valuation experts, attorneys, wealth planners, and family business owners who testified. Read more >>

Recap of the IACVA/SECBA Atlanta conference

A few takeaways from Business Valuation in an Upside Down World, a two-day event co-sponsored by the Southeast Chapter of Business Appraisers (SECBA) and the International Association of Consultants, Valuators and Analysts (IACVA). Read more >>

AICPA names new Forensic and Valuation Services committee chairs

Annette Stalker (Stalker Forensics) has been appointed as chair for the AICPA’s Forensic and Valuation Services Executive Committee; Michael Fahlman (Berkeley Research Group LLC) will chair the Forensic and Litigation Services Committee; and Nathan DiNatale (SC&H LLC) will assume the chair for the Business Valuations Committee. Read more >>

IRS inundated with comments on proposed IRC 2704 regs

Over the past week, over 100 new comments have been submitted to the IRS about the controversial proposed Section 2704 regs designed to rein in estate tax valuations. That brings the total comments to almost 200, but it's hoped that many more will come in before the due date of November 2. Read more >>

Appraisers see spike in engagements due to proposed Section 2704 regs

At the ASA Advanced Business Valuation Conference last week in Boca Raton, Fla., valuation practitioners told us that they are seeing an increase in valuation engagements triggered by the proposed Section 2704 regulations. They expect the increased business to gain steam as the regs continue to sink in with attorneys, wealth planners, and clients. Read more >>

Act now to avert tough IRS crackdown on estate valuations

Well-crafted comments can change the course of the controversial proposed IRC Section 2704 regs designed to curb estate valuation discounts. There's a concern that, if these regs are finalized as proposed, the federal government will go after valuation discounts in other contexts. Comments are due by November 2, and there's a public hearing in Washington on December 1. Read more >>

Fledgling BVers to compete in Fifth Annual Business Valuation Challenge

College students from across the country will compete in the upcoming Business Valuation Challenge hosted by Georgia State University. There are 24 first-come-first-serve slots, and registrations are due September 15. BV firms can sponsor students, and it's a great place for you to scope out new talent. Read more >>

Dreaded IRS estate valuation discount regs released

The Treasury has released long-awaited proposed IRC Section 2704 regulations designed to curb estate valuation discounts. It appears that the proposed regulations eliminate almost all minority discounts for closely held entity interests, including operating businesses owned by a family. The proposed regs have triggered a strong response from the valuation community, legal profession, and others. Read more >>

Proposed method to deal with confusion over discounts

A number of leading valuation experts have called for the profession to speak with one voice and eliminate the confusion over the use of discounts. One valuation expert offers up some nomenclature and—more importantly—a framework that he hopes will help with this thorny issue. Read more >>

Brexit's impact on cost of capital

The Brexit vote reinforces the need for internal consistency between the elements of cost of capital and the current economic environment, according to leading global valuation experts and finance professors. Also, there may be a “new normal” in terms of interest rates, risk premiums, and growth. Read more >>

FVQI exposure drafts comment period extended to August 24

You now have until August 24 to comment on two important exposure drafts that relate to the ongoing fair value quality initiative (FVQI) designed to improve financial reporting valuations for U.S. publicly traded companies. Read more >>

How to value a small piece of a famous rock song

If the jury had sided with the plaintiff in the Led Zeppelin "Stairway to Heaven" case, it would have had to carve out the value of the riff that only forms part of the song. BVWire asked Michael Pellegrino (Pellegrino & Associates), a valuation expert (and musician) who specializes in intellectual property, for some insights into some of the thoughts behind how this would have been determined Read more >>

S Corp model now in Tax Court

At the recent NYSSCPA business valuation conference in New York City, Daniel Van Vleet (Stout Risius Ross) told the audience that the Van Vleet model (S corporation economic adjustment model) is being used for the first time in a pending U.S. Tax Court case. What’s more, both the IRS and the taxpayer are using it in this case, says Van Vleet. Read more >>

NACVA's star-studded silver anniversary conference

Shannon Pratt, Roger Grabowski, Jim Hitchner, Nancy Fannon, and the Honorable Judge David Laro of the Tax Court are just a few of valuation thought leaders dubbed by NACVA as “industry titans” who gave presentations at the organization’s 25th anniversary conference in San Diego Read more >>

Survey participants needed in new research on fair value estimation

Last year, the Public Company Accounting Oversight Board (PCAOB) issued for public comment a staff consultation paper on potential standard-setting activities related to the auditor using the work of specialists, including valuation professionals. The University of Wisconsin-Madison is conducting a survey on the role of specialists in developing and evaluating the fair value estimates used in audited financial statements. This research may help in the PCAOB’s standard setting in this regard. Read more >>

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