Speakers refute IRS stance on discounts to Partnership Profiles data

At the recent Partnership Profiles’ “Appraising Family Limited Partnerships” course in Dallas, a participant asked the speakers to comment on the IRS’s Discount  for Lack of Marketability Job Aid for IRS Professionals, according to a report in the BVWire. In the Aid, the IRS indicates that both minority and marketability discounts are already reflected in the Partnership Profiles data, and therefore appraisers shouldn’t add a marketability discount.

Speaker Spencer Jefferies (Partnership  Profiles) responded that some appraisers add small marketability discounts  because the partnerships covered in his study were traded in the secondary  market. “There is a lot of misinformation in the Job Aid and Mike Gregory is addressing the concerns in the Discounts for Lack of  Marketability and the IRS,” said presenter Bruce  Johnson (Munroe, Park & Johnson). Gregory was with the IRS for 28 years  and put together the DLOM Job Aid back in 2009 and is now a private consultant and mediator.

For more details, see the March 12 issue of BVWire (free registration required).