Noncertified occasional valuer is not a qualified appraiser, per Tax Court
For tax purposes, the most important requirement under the qualified appraisal rules is that the valuation be done by a qualified appraiser. But how much experience is enough? A new case gives some guidance.
The No. 1 valuation issue that triggers an IRS audit
Discounts continue to be the No. 1 red flag that triggers an IRS audit, according to former IRS manager Michael Gregory (Michael Gregory Consulting LLC), speaking at the recent American Society of Appraisers (ASA) International Appraisers Conference in New Orleans.
Prince Estate and IRS Embroiled in Fierce IP Valuation Dispute
Back in January, BVWire ran a news item on a recent article from the Star Tribune. The article states that the executor of the estate of Prince, the late world-famous rock star, and the Internal Revenue Service are currently locked in a fierce estate and gift tax dispute. The IRS argues the executor has seriously undervalued the estate, and the executors claim the IRS’ calculations “are riddled with errors.”
How COVID-19 Is Impacting the IRS and Valuation Audits
Still reeling from the effects of the government shutdown and budget cutbacks, the pandemic has dealt another blow to the IRS that has affected how the agency selects and reviews tax returns that include valuations. A former IRS manager who dealt with valuations at the agency gives some interesting insights.
IRS deals with triple whammy as it reviews valuations
The government shutdown, budget cutbacks—and now the pandemic—have impacted the IRS and how it selects and reviews tax returns that include valuations.
Closed-End Fund Report: Stocks and Equity Investments
March 2024 PDF (56 pages)
Bruce A. Johnson, James R. Park
Partnership Profiles, Inc.
Closed-End Fund Report: Fixed Income Securities
March 2024 PDF (41 pages)
Bruce A. Johnson, James R. Park
Partnership Profiles, Inc.
Nearly 5% of estates now fall under HMRC’s inheritance tax rules (IHT)
BVWire—UK estimates that 28,000 estates fall into the inheritance tax (IHT) rules this year, an increase from 24,500 in 2015/2016.
Nelder discusses trends in fiscal business valuations for HMRC
As most British business valuators know, HMRC Shares and Assets Valuation (SAV) reviews (and sometimes questions) fiscal valuations. Staff at SAV have shrunk by about half over the years, but they still deal with many valuations (approximately 12,500 a year).
Valuators now have 90-day extension option for HRMC employment income or share scheme filings
Accountants and valuers file a significant number of extension requests for existing EMI agreements.
How IRS turmoil from the shutdown affects BV
The IRS is doing its best to recover from the government shutdown, but business valuation experts need to be aware of certain issues, according to Michael Gregory (Michael Gregory Consulting LLC), who gave an IRS update during a recent BVR webinar.
Top 10 observations on the Tax Cuts and Jobs Act (TCJA) from the perspective of business valuation professionals
BVR caught up with practitioners at the most recent AICPA Forensic & Valuation Services (FVS) Conference to collect some thought-provoking observations on how the Tax Cuts and Jobs Act (TCJA) is impacting valuations. Practitioners are still grappling with understanding the new law’s many provisions, so this list is certainly not exhaustive, and the thinking will continue to evolve.
2018 in review: The most important developments in the business valuation profession
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018.
IRS BV community is ‘fractured’
The IRS business valuation community is “very fractured,” leading to inconsistencies on audits, says former IRS manager Michael Gregory (Michael Gregory Consulting LLC).
Sit in on a real-world IRS audit
A former IRS manager will conduct a mock audit of an estate valuation matter during a special four-hour workshop on September 25.
What’s it like to be on the IRS audit hot seat?
Find out during a special four-hour workshop that pits a former IRS manager against a business valuer in a mock estate tax audit.
Top five business valuation tips from recent training webinars
As a busy business valuation professional, you may not always have the time to attend training events. We’ve compiled the top five tips from recent BVR webinars on the most timely and important topics in the profession.
Compromised Section 1031 appraisal sinks Exelon tax strategy for fossil fuel power plant sale
U.S. Tax Court Judge David Laro frequently has cautioned experts not to give in to hiring attorneys who want to shape the appraisal. Although federal and state discovery rules offer some protection for attorney-expert communication, there is a risk of exposure and with it a risk of damage to the expert’s work product and reputation. A recent Section 1031 case, which Judge Laro handled, illustrates what happens when the communication is discovered.
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.
Challenge to new Section 2704 regulations is shaping up
The accounting, valuation, and legal professions are hard at work to defeat the Treasury Department's proposed Section 274 regulations. The new regs would curtail, if not entirely eliminate, valuation discounts in family-controlled entities.
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.
Tax Court revaluation means big-time savings for taxpayer
In an estate tax dispute that has lasted for over five years, the Tax Court recently revalued the decedent’s minority interest in an Oregon family business by order of the 9th Circuit Court of Appeals. The recalculation proved a boon to the taxpayer.
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.
Delaware Supreme Court Judge Boos Chancery's Option Valuation Case Analysis
In reviewing one of the Delaware Court of Chancery's most noteworthy rulings from 2015, one judge on the state Supreme Court wrote a stinging critique of the trial court's analysis.
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.