IBA highlights include FLP settlements, database comparisons
The 2000 IBA annual conference, held Feb. 3-5 in Phoenix, included a variety of "hands-on useful" presentations and panels. Highlights of a few of the presentations, award recipients, and audiotape in ...
Lost profit damages analysis offers a natural extension for business appraiser skills
Business appraisers often find themselves in a litigation setting. After all, much of the work that we do has two distinct "sides," whether it is a divorce, a shareholder dispute, or a matter before t ...
1999 in review: What we learned in a busy year
My 30 th year in the business valuation profession ( see December 1999 BVU , p.1) was an active one in terms of development in the profession. Here are some of the highlights: l 1999 was o ...
IRS publishes final regulations for "adequate disclosure" of gifts
Responding to proposed gift tax regulation comments, on Dec. 3, 1999, the Internal Revenue Service published final regulations for the Adequate Disclosure of Gifts (64 Federal Register 67767). The ...
Expert witness for IRS attacks size premium part of discount rate
At every one of the several merger & acquisition meetings that I have attended in recent months, both buyers and intermediaries consistently say that smaller companies usually sell at lower multip ...
IRS audits family limited partnerships
A client of mine received the attached questionnaire from the Internal Revenue Service concerning preparations for a possible audit of his FLP. I am told that a number of FLPs have received ...
IRS proposes regs to start gift tax statute of limitations
Adrian presents a straightforward explanation and discussion, from a business appraiser's point of view, of the requirements and pitfalls that the IRS proposes to impose in order to trigger the three ...
Sale of Nonprofit Facility Results in Inurement to Buyers; Court Refuses to Receive IRS Expert's Report in Evidence
According to the court, "The primary issue for decision is whether petitioner's tax-exempt status should be revoked."
Attorneys discuss case involving actuarial tables
Madden, Robert E., and Hayes, Lisa H.R. "Taxpayer Was Entitled to Rely on Actuarial Tables Despite Terminal Illness" Estate Planning, July 1998, pp. 268-271. This article discusses in some detai ...
Anclote Psychiatric Center v. Commissioner (II)
The primary issue is whether petitioner's tax-exempt status should be revoked, and whether the sale of its hospital in May 1983 was for less than fair market value.
Court of Appeals Holds Commisioner to Published Revenue Rulings in Partnership and Annuity Transaction
Because the facts were not in dispute, the only question before the Court of Appeals was whether or not Gordon B. McLendon was sufficiently close to death on March 5, 1986, to require him to depart from the actuarial tables published by the Commissioner of Internal Revenue in valuing a remainder interest and related annuity.
Institute of Business Appraisers 20th anniversary conference open with IRS attorney; closes with estate planning attorney
n LITIGATING ISSUES IN THE FAMILY LIMITED PARTNERSHIP ARENA Melanie Urban, Esq. Internal Revenue Service Houston, TX Ms. Urban opened with a declaration that there are two things that the IR ...
Estate of McLendon v. Commissioner
Issue was whether McLendon was sufficiently close to death on March 5, 1986, to require him to depart from the actuarial tables in valuing a remainder interest and related annuity.
Family Limited Partnerships: Let's get ready to rumble!
The surge in popularity of family limited partnerships ("FLPs") over the past two years has provided both problems and opportunities for the valuation analyst. Due to the significant impact that these ...
ESOP conference addresses whether appraiser may be a fiduciary
At The ESOP Association's Valuation Advisory Committee meeting May 14, Jared Kaplan , a well-known ESOP attorney with McDermott, Will & Emery , said, "If you are a financial advisor to a fiduc ...
Partnership between appraiser and tax attorney
SP: Owen, I heard you say recently, The IRS has adopted the hyena pack' approach to transfer tax audits and tax litigation, believing there is tax abuse in the FLP area; What do you mean by t ...
Fiore advocates cooperation
In the past few issues of Business Valuation Update, there has been much coverage of FLP valuation, due to a combination of developing appraisal methodology and IRS stepped-up challenges of ...
Court Forced to Reach Conclusion Based on Weak Evidence
The issue in this case is the value of minority shares of Kosman, Inc., a family holding company owning shares of stock of small banks.
Kosman v. Commissioner
At issue is the value of petitioner's stock in Kosman that she gave to her children.
Trapped-in capital gains affects real-world value
An ongoing issue in gift and estate tax valuation is whether, or the extent to which, the liability for unrealized capital gains on appreciated assets should be reflected in valuation of a stock or pa ...
Article critiques the Tax Court's decision and experts' avidence in the Mandelbaum case
Hall, Lance S. and David M. Eckstein, "Ten Easy Steps to Determine Discounts: Fact or Fiction?" Article forthcoming in December issue of the CEB Estate Planning and California Probate Re ...
Limited partnership unit sales show large discounts from net asset value
This article focuses primarily on discounts for limited partnership interests, and also mentions discounts from net asset value (NAV) for companies in corporate form, detailing a few of the authors' own experiences in reaching settlements with the IRS.
Estate of Hall v. Commissioner
At issue is the value for estate tax purposes of decedent's equity interest in Hallmark Cards, Inc.