Thoughts and Insights by Michael Gregory

IRS Updates & Help

A mansion with many rooms and a big garage
August 24th, 2020

This is how to interact with an IRS Estate and Gift Tax Attorney on a valuation issue

It was my pleasure to be interviewed by Melissa Gragg, the Managing Partner at Bridge Valuation Partners, LLC, via her pod cast on this topic. For those not interested in listening to a nearly 90 minute podcast with lots of details, here is a much shorter seven minute version sound bites on LinkedIn. However, for those looking for a quick read on some of the key points this may help. We discussed over a dozen questions and additional follow up questions, but here are some of the key points.

Man in suit pointing at clear screen where the button he is pointing at says audit
August 7th, 2020

Begin an Audit with the IRS with Collaboration

When you think of collaboration quite likely the IRS does not come to mind. Rather when you hear the term IRS you are not thinking of working together. Instead the thought of an IRS audit likely brings forth thoughts of anxiety, I don’t have time for this, why me and now what? With that in mind I thought explaining some basic tips after receiving an audit letter from the IRS may help. Especially as these tips relate to The Collaboration Effect. After all the IRS are people too.

IRS symbol with IRS - blue background and white symbol and lettering
August 3rd, 2020

IRS, Business Valuers, Adjustments and Preventative Approaches

On July 1, 2020 it was my pleasure to be interviewed by Melissa Gragg, CVA, MAFF, CDFA and Managing Partner at Bridge Valuation Partners, LLC. This 84 minute podcast is packed many ideas of how to avoid and what to do if audited by the IRS on an estate or gift tax return. For business valuers this commentary focuses on the most common adjustments by IRS Business Valuers and what you might want to consider to both avoid an audit and what to do if audited. What does this have to do with The Collaboration Effect® you may ask. Read on. Clearly not everything in that podcast can be presented here, but some of the key highlights can be. The purpose of this commentary is to focus on one of the questions from that podcast. That is: What are the most common adjustments by IRS Business Valuers.

Tax type papers, coffee cup and calculator on a destk
January 6th, 2020

Token Concessions and Counteroffers in Negotiations with the IRS on Business Valuations

When you think of negotiations, do you think about the IRS? With all of the negatives on TV about the big bad IRS it is important to realize they are people with a job to do, and they are indeed people. As with any organization there can be zealots that are over the top. Depending on your experiences you may have met one, and that person may have set your bias on the IRS. However, the vast majority of IRS examiners are reasonable people. if you are open to resolving issues with the IRS, here are two key elements to consider. Before proceeding, reflect and remember your ethical principles and values to be true to yourself. If what you want to do is do the right thing, do what it takes and have closure these ideas can help you with the IRS. Let’s look at token concessions first.

golf clubs set up at the practice range
August 19th, 2019

What questions should you ask when preparing for a valuation discussion with the IRS?

This article addresses how to prepare and what questions to ask when involved in a facilitation, negotiation or mediation with another party. The focus here is on a business valuation issue with the IRS.  Preparation is key. Conducting a mock interaction ahead of time can be extremely valuable. 

A hot tub
April 1st, 2019

Hot Tubing with the IRS in U.S. Tax Court on Valuation Cases

Over the last few years the U.S. Tax Court has been experimenting with “hot tubbing” experts [concurrent witness testimony] on cases so that the U.S. Tax Court Judge can informally sit with the experts and ask questions. The commentary that follows considers an application of The Collaboration Effect TM to this situation.

Puzzle pieces coming together with puzzle piece names of goal, vision, strategy, planning and process
January 7th, 2019

What is the best process when it comes to a negotiation?

Process matters.  Are you a “win all” type negotiator implying win everything at all costs?  That is, you win and they lose.  By contrast, are you a win-win negotiator oriented towards expanding the pie negotiator so that both you and the other party can both do better?  That is focusing on mutual gains.

September 4th, 2017

Negotiations, Neuroscience and the IRS

In an experiment by neuroscientists participants were given $10 dollars and were told they needed to share the amount with another party. If the other party accepted the offer they could keep the difference. This resulted in some interesting findings that were found to tie directly into negotiations. The commentary that follows could be used in any negotiation including those with the IRS and in other venues where one party seems to have an upper hand.

April 17th, 2017

Business Valuation and Conflicts with the IRS

Today the focus is on the IRS, business valuation and how to overcome differences of opinions with the IRS.  Although our society reinforces confrontation, winning and overpowering the other side, I am offering a way to reduce stress, save time, save money and work to resolve issues with the IRS.  This method does not always work, but in my experience it works nearly all the time.  As such consider the approach offered as a way to resolve your business valuation issue with the IRS.  I also ways to proceed should the recommended approach not work. 

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