Business Appraisals and the IRS

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.

Table of Contents

  1. Overview of Chapter Contents
  2. Classification in General and in Estate and Gift Tax in Particular
  3. Writing a Business Valuation Report for IRS Tax Purposes
  4. Potential Penalties on Appraisers
  5. Considerations in Valuing Interests in Subchapter S Corporations
  6. Reasonable Compensation in Corporations
  7. Code Section 409A and Valuators
  8. Discounts for Lack of Marketability
  9. Most Common Errors in Valuations
  10. Potential Growth Areas for Business Valuation Appraisers
  11. How to Work with the IRS to Resolve Differences in Valuation
  12. Key Take-Away Items for Business Valuation Appraisers