Watch out for ‘black box’ compensation apps
During his session on reasonable compensation at the Forensic and Valuation Conference hosted by the Virginia State Society of CPAs, Neil Beaton (Alvarez and Marsal) discussed the various compensation benchmarking surveys and subscription databases.
Reilly examines key Tax Court case on reasonable comp
Nationally known valuation expert Robert Reilly (Willamette Management Associates) has done a comprehensive 17-page article on the Hood case—a Tax Court case with some important and practical guidance on determining reasonable compensation.
Final issue of Willamette’s Insights focuses on best practices
The Winter 2023 issue will be the final one for Insights from Willamette Management Associates.
BV News and Trends January 2023
A monthly roundup of key developments of interest to business valuation experts.
New Case Points Up Practice Opportunity in Reasonable Compensation
Opposing counsel attacked a valuation expert over his expertise in assessing reasonable compensation—and also criticized the data he used. The expert prevailed in this challenge, which illustrates that valuation experts can take on engagements in tax matters and shareholder disputes involving the fair market value of executive compensation.
Private firms pay a median $30,000 in board retainers
To support adjustments for reasonable compensation when doing private-company valuations, comparable data are necessary.
Is the IRS Job Aid on reasonable comp still relevant?
Released in 2014, the “Reasonable Compensation Job Aid for IRS Valuation Professionals” is an internal IRS document designed to help review compensation reported on federal tax returns.
Attorneys and Valuers Link Up at AAML/BVR Virtual Divorce Conference
Coverage of several sessions that include tips on managing client expectations in uncertain times and the new “abnormal” with respect to executive compensation.
BVU News and Trends February 2020
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends December 2019
A monthly roundup of key developments of interest to business valuation experts.
Reasonable comp on IRS radar in S corp audits
IRS examiners looking at S corps now have an item on their audit checklist asking for justification for owner’s compensation, according to RCReports in its December email newsletter.
Reasonable comp: What’s in a title?
When using the market approach to determine replacement compensation, very often you begin by asking somebody his or her title.
Determining Reasonable Compensation Using RCReports Data
A user’s perspective on RCReports, a cloud-based software application designed to help calculate accurate and defensible reasonable compensation for closely held business owners.
Reasonable Compensation for Closely Held Businesses + RCReports Demo
Determining reasonable compensation for closely held small and medium-sized businesses is not a magical or mysterious process. In fact, it is a straight forward process that relies on a basic understanding of the three different methods for determining reasonable compensation and when and where they apply. Join Stephen Kirkland and Paul Hamann for this rewarding and rich session. Practitioners armed with this knowledge and the proper tools can easily determine reasonable compensation for any company.
BVU News and Trends July 2019
A monthly roundup of key developments of interest to business valuation experts.
RCReports Launches Study on Reasonable Compensation Valuation Practices
A provider of compensation data, RCReports, is doing a study designed to find out the challenges, needs, and current practice of business valuators when determining and defending reasonable compensation.
Study launched on reasonable comp valuation practices
RCReports is currently conducting a study to find out the challenges, needs, and current practice of business valuators when determining and defending reasonable compensation, Paul Hamann, the firm’s founder and president, tells BVWire.
Normalizing exec pay can be tricky—in and out of court
Doing normalization adjustments can be a very sensitive issue during a valuation engagement—and also in court, if the matter ends up there.
BVU News and Trends February 2019
A monthly roundup of key developments of interest to business valuation experts.
New edition of exec comp survey released
The 2018 Northwest Executive Compensation Survey, published by Milliman, is now available.
Determining the deductibility of executive compensation: Exacto Spring Corp. v. Commissioner, Hathaway, Heather
The Tax Lawyer , Summer 2000, Volume 53, Number 4 This note discusses the executive compensation test applied by the Seventh Circuit to a Section 162 corporate deduction in the Exacto Spring Corp ...