No one wants to go to Tax Court, so what steps can valuation experts take to keep their clients out of it? Dennis Webb, a principal of Primus Valuations, listed three basic principles at the ASA’s May 17 U.S. Tax Court Cases Symposium in Cerritos, Calif.:
- Find the facts.
- Connect the facts. “There is market data; there is indication of discounts; there are various ways of looking at the hodgepodge of data,” Webb said.
- Tell the story in a way that a reader can understand it. Webb said he is working on an admittedly complicated case now and it took him two days to read three reports from a Texas appraiser to figure out what he’d done. “It shouldn’t take me two days and it shouldn’t take the client two days to read. Write something people can understand.”