Thoughts and Insights by Michael Gregory

Three models for you to consider regarding conflict resolution

I have recently learned that providing three ideas on a topic and approaching the topic from three different angles is an optimum way to share information and for others to optimally take away key points.  With that in mind I am offering you three models related to conflict resolution. Hopefully one of these will help you when you are in conflict with someone else.  Read about all three and then pick out what works best for you. Try it. Practice it. See if this might work for you. If not try another alternative. Do what works for you.

How do highly successful people argue differently?

When you argue with someone else what would you like to have happen?  Do you argue to win? Do you argue to try and convince the other party that your view is right and theirs is wrong? What do you want to have happen as a result of this argument?  All too often these questions might be how you initiate an argument thinking you are 100% right and the other party is 100% wrong. The question is how successful is it for you to try and win the argument? Did you really convince the other person you were right, and they were wrong, or if you have the power, did you simply bully them into acceptance? Would you like to know a better way?  Read on.

Do attitudes matter in conflict resolution and negotiations?

As an experienced mediator and negotiator, I have asked myself this question. Researching it further I wanted to share with you what I have learned. Other experts in the field have offered advice too. Attitudes drive behaviors. There seems to be a consensus that yes, mental attitudes play a critical role in determining whether a mediation or a negotiation is successful. A deeper dive into the process is presented to help you and for you to help others that may be involved with self-determining mediations or negotiations.

IRS and conflict resolution – Part 6 Thoughts on Rev. Rul. 59-60

One of the fundamentals of business valuation training is Revenue Ruling 59-60. Although published in 1959 with the express purpose to “outline and review in general the approach, methods and factors to be considered in valuing shares of the capital stock of closely held corporations for estate tax and gift tax purposes” it has been accepted by the federal courts in applications of fair market value across the board. This commentary introduces the main points of the revenue ruling, provides some insights from a historical perspective and comments on a recent publication regarding Revenue Ruling 59-60 and its application to Subchapter S corporations, limited liability corporations, and partnerships.

What does it mean to be ethical in a negotiation?

Having taught ethics to CPA societies and in other venues I make use of my own texts and also those of Linda Fisher Thornton with her book, 7 Lenses: Learning the Principles and Practices of Ethical Leadership.  This commentary makes use of these sources and an article from the Harvard Law School Program on Negotiation written by Katie Shonk entitled Ethics in Negotiation: Avoid Complicity in Wrongdoing. In negotiations this implies not committing illegal and immoral acts, but also calling out unethical behavior of others. Shonk’s article highlights Max Bazerman’s book, Complicit: How We Enable the Unethical and How to Stop. You only have one reputation. You need to protect that all costs. So, what do you do? Read on.

Business valuers, the IRS, and conflict resolution – Part 5 Negotiating with the IRS

The last two weeks I offered ideas on the Top Strategies for Negotiation Part One and Part Two. This article is one of a series of five articles over the past five months. The focus of this article is entirely with the IRS on a technical issue. Having worked for the IRS for 28 years at all levels from specialist to executive, having brought mediation and mediation training to the IRS Large Business and International Division and trained some 2,500 employees in the techniques, having been involved with over 2,500 mediations from boards of directors with fortune 100 companies on billion dollar issues, to the IRS on valuation issues or issues on research credit from thousands of dollars to a billion dollars, I wanted to offer you some insights on how to negotiate with the IRS on examination on these types of issues. Similar techniques can be used at Appeals and with IRS Counsel, but the emphasis there is on hazards of litigation. There is a different emphasis on examination that focuses on factual development. This commentary will introduce you to factual issues and negotiations on examination where issues are discussed and may be resolved factually.

Should you make the first offer in a multi issue negotiation? Yes, but…

When you are involved in a multi-issue negotiation you may have asked yourself whether you should make the first offer and if so on which issue? Should you offer something significant on a major issue? Should you offer a token offer on a minor issue? There are different schools of thought on this. Recent research from the Harvard Program on Negotiation at Harvard Law School offers some good insights for you to take advantage of this multi-issue negotiation. Additional insights are provided based on real world negotiations between a major taxpayer and the IRS.

Business valuers, the IRS, and conflict resolution – Part 4 S-Corp issues

This is the fourth in a series of six monthly technical blogs on issues related to business valuation. Many business valuers believe that all entities whether a C-corp that is taxed or an S-corp that pays no federal income taxes should both be valued as if they pay tax (Grabowski, Mercer, Van Vleet)[i]. These business valuers believe there is no difference in the determination of fair market value. Others believe there is an S-corp adjustment to be made, but it should not be fully taxed (Fannon, Treharne)[ii]. These approaches suggest a premium for an S-corp. In general, the IRS believes that an S-corp should not be tax affected since it does not pay federal income taxes. This article looks at this issue in general. For a more complete analysis of this topic see original commentary dated Valuing Interests in S Corps (2013) or an updated and more comprehensive commentary within Business Valuations and the IRS (2018).   [i] https://www.amazon.com/Business-Valuations-IRS-Michael-Gregory/dp/1945148020 (423-433 and 436-441)   [ii] https://www.amazon.com/Business-Valuations-IRS-Michael-Gregory/dp/1945148020 (419-423 and 433-435)  

What are the keys for a successful mediation?

Having been involved in over 2,500 mediations, facilitations, and negotiations in my career, I thought what are keys to a successful mediation? Revisiting this I want to offer you some thoughts that may help you. My experience is largely oriented towards the federal judicial system, working with experts and clients, administratively with the IRS, and as a volunteer in housing court, conciliation court, with neighborhood disputes, in public housing and other venues including between gangs. I have found that alternative dispute resolution focusing on mediation works, saves time and money, is confidential, and it is successful in implementation because the parties produced a solution that they can both live with going forward. What follows are some key elements and what I have found as best practices that you may find helpful too.

When using a mediator what process might be used?

When humans interact on a conflict it does not mean there have to be negative consequences. Disputes, conflicts, or disagreements can be addressed in a number of ways, but sometimes a third party mediator may help the parties look at the situation differently allowing the parties to actually grow as part of the process. A trained mediator familiar with the area in question can often cut to the chase and help de-escalate the situation to focus on the substantive issues. In previous posts the various alternative forms of mediation were introduced (evaluative, facilitative, transformative) including with an application to family businesses. What these demonstrate is that mediation can play a vital role in addressing these types of disputes.