An internal IRS document is now available that reveals the agency’s most current thinking on the valuation of S corps, one of the hottest topics in business valuation. The document was written to help IRS professionals who are examining S corp valuations—and it presents a wealth of information for valuation analysts.
How to get it: The 33-page Job Aid, entitled The IRS Valuation of Non-Controlling Interests in Business Entities Electing to be Treated as S Corporations for Federal Tax Purposes, is posted on several websites, including the website of Jim Hitchner’s Valuation Products and Services. The Job Aid is included on a dedicated web page created by Business Valuation Resources that also includes articles, videos, and other resources devoted to S corp and other pass-through entity valuations. Michael Gregory (Michael Gregory Consulting), while working at the IRS, was a champion of the IRS internal team on valuing S corps. Gregory will host a webinar on June 16 for BVR and he will give his unique insights on the Job Aid.
BVR’s new S corp webpage also includes information on a new book, Taxes and Value: The Ongoing Research and Analysis Relating to the S Corporation Valuation Puzzle, which is a major advance in thinking about S corp valuations. A special 4-hour workshop that will reveal a new approach to PTE valuations will be held on May 20. The workshop will be conducted by the new book’s authors, Nancy Fannon (Meyers, Harrison and Pia LLC) and Keith Sellers (University of Denver).