A must-read for business valuation appraisers who provide appraisals for federal tax purposes, who provide expert testimony, and who work with or for the IRS. Written by an expert with more than 30 years experience in the tax and valuation field.
This book is specifically written for business appraisers. "How to Work with the IRS, Second Edition" contains technical and administrative chapters. This text emphasizes what business appraisers need to know about how to write a valuation report for the IRS.
The introduction provides an overall commentary look at the chapters. The chapters that follow address what an appraiser can do to avoid an audit through the classification process by preparing the report for tax purposes, and asking the client to attach the report to the return.
Various technical topics such as S Corp valuations, reasonable compensation, 409A Differed Compensation, and Discounts for Lack of Marketability are included.
To avoid penalties the most common errors in valuations are explained as well as the penalty process related to appraisers. Each chapter contains practical pointers at the end of the chapter to provide the reader with a quick overview of the most important points in each chapter, and to ensure that you are taking away the most significant points.
Feedback on this book has been very good by the reviewers of this book including Nancy Fannon, Chris Mercer and Roger Grabowski. I thank them for their insightful comments. I hope you find this as helpful to you as it was for me in preparing this text for you, the business appraiser.