Estate of Dailey v. Commissioner (I)
At issue are the valuation of certain retained and gift interests in a Family Limited Partnership (FLP).
Valuation uncertainty continues – the Ninth Circuit reverses the Tax Court
The recent enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 1 (Act) poses new challenges and opportunities alike to owners of substantial estates and their profess ...
9th Circuit Vacates and Remands Tax Court's Valuation in Mitchell
In this ongoing estate tax proceeding, the Estate of Paul Mitchell (Estate) appealed the U.S. Tax Court's decision allowing the Commissioner of the IRS to assess an additional $2,404,571 in federal estate taxes.
Estate of Mitchell v. Commissioner (II)
Estate claimed Tax Court erred by failing to provide a detailed explanation of the methodology used to calculate FMV, miscalculating the value, and failing to shift the burden of proof.
9th Circuit Reverses Kaufman; Actual Sales Best Evidence
This case is the 9th Circuit Court of Appeals' decision on appeal of Estate of Kaufman v. Commissioner, T.C. Memo 1999-119 (1999), which was abstracted in the May 1999 Business Valuation Update.
Federal cases challenge financial experts on basis of Daubert/Kumho tests
Daubert v. Merrell Dow Pharmaceuticals, Inc. , the U.S. Supreme Court defined the trial court's gatekeeping duty under FRE 702 with respect to the admission of expert opinion testimony. In Kumho Ti ...
Protect clients against liability in buyout deals
I never cease to be amazed at the huge damage awards in breach of fiduciary duty liability suits in conjunction with company buyouts. Most of these awards could have been prevented. Last issue we ha ...
Morrissey v. Commissioner
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT JAMES J. MORRISSEY; ALAN S. BERCUTT, C.P.A.; DIANE FANTL, Co-executors of the Estate of Alice Friedlander Kaufman, No. 99-71013 Deceased, Tax Ct. No. Petitioners-Appellants, 17050-97 v. OPINION COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. Appeal from a Decision of the United States Tax Court Argued and Submitted February 14, 2001--San Francisco, California Filed March 15, 2001 Before: Procter Hug, Jr., John T. Noonan, and William ...
Transactions Occurring Shortly After the Valuation Date Are Probative
The U.S. Court of Appeals for the 9th Circuit considered the Tax Court’s valuation of an Oklahoma company holding a uniform manufacturer in Estate of Kaufman v. CIR, T.C. Memo. 1999-119.
IRS proposes new rules for reporting gifts; Statute of limitations welcome, but some proposed requirements difficult
Certainly taxpayers welcome the provision of the Taxpayer Relief Act of 1997 that starts a three-year statute of limitations on revaluation when a proper gift tax return is filed, whether any gift tax ...
ABA panel calls for elimination of ancillary business restrictions
By Shannon Pratt and Yazhi Li The theme of the ABA Tax Section Plenary Session was whether to do away with the rules prohibiting law firms from engaging in ancillary businesses with non-lawyer ...
ASA International Appraisers Conference Presentation Summaries
n Discount Settlements on Recent Family Limited Partnership Cases Curtis Kimball, ASA, CFA Willamette Management Associates Curtis Kimball discussed the increasingly popular medium for e ...
Fair value: a view from the Delaware Court of Chancery bench
Vice Chancellor Jack B. Jacobs has served on the Delaware Chancery Court bench for 14 years. He has written many widely quoted opinions on fair value in statutory appraisals and breach of fiduciary du ...
1999 Guide to Business Valuations has "fair value" chapter, much more
The new 1999 Guide to Business Valuations contains more new material than any edition in several years.
Taxpayer's Expert 'Unpersuasive'; Record Doesn't Meet Burden of Proof; IRS Wins by Default
Alice Friedlander Kaufman owned approximately 20% of the stock of Seminole Manufacturing Co. when she died.
Estate of Kaufman v. Commissioner (I)
At issue is the valuation of the decedent's stock in a manufacturing company.
ABA Panel Calls for Elimination of Ancillary Business Restrictions
Alice Friedlander Kaufman (decedent) owned approximately 20% of the stock of Seminole Manufacturing Co. when she died.
Arm’s-Length Sales, Comparable Companies, and Elements of Control
The Tax Court valued a minority interest in a holding company that held a controlling interest in a uniform manufacturing company.
1998 IRS Restructuring and Reform Act begs timely, high-quality appraisals
Signed into law by President Clinton on July 22, 1998, the IRS Restructuring and Reform Act of 1998 ("Act"), which includes the "Taxpayer Bill of Rights 3," will impact significantly and positively o ...
Montgomery v. Aetna Plywood
At issue is the valuation of ESOP shares at the time of a stock transaction.
No Independent Appraiser Sought: ESOP Fiduciaries Clearly Liable for Breach
This case involves the sale of the controlling block of stock of Aetna Plywood Inc. held by the company's employee stock ownership plan (ESOP) to the company in a leveraged buyout.
Roggen v. Roggen
The issue in this case was the value of a condominium and whether it should have been included as marital property.