Business Valuations and the IRS

The most comprehensive publication ever written for business valuers who prepare appraisals for federal tax purposes.

It compiles five books into one book with five parts, with the first two parts presenting processes and approaches to resolve conflict, followed by three parts addressing the most common adjustment areas by IRS engineers and valuers.

PART ONE offers an orientation to IRS organization and culture, IRS official and unofficial rules of engagement, how classification works in general and in business valuations in particular, suggestions for how to work with IRS valuers and specialists, and recommendations for using expert witnesses.

PART TWO shows the reader how to resolve issues with the IRS. The most common errors in valuation are presented, followed by strategies for issue resolution and mediation, suggestions for using the IRS evaluation process to resolve issues, strategies for resolving conflicts with IRS teams and agents, and suggestions for writing a business valuation report for the IRS while avoiding potential penalties.

PART THREE focuses on S-corp valuations and the additional risks associated with S-corps. Fifteen items are presented that business valuers should request from clients in every S-corp valuation. Recommendations are then offered based on how the IRS approaches S-corp valuation issues.

PART FOUR addresses reasonable compensation. This includes a thorough review and critique of the IRS Job Aid on reasonable compensation as well as its extremely useful appendix. Specific recommendations are presented based on practical experiences with the IRS.

PART FIVE provides the reader with the most current thinking, ideas, tools and approaches related to Discount for Lack of Marketability. The IRS Job Aid is presented and critiqued with the most current thinking by then-current as well as new models used by valuers.

The Text Contains

  • 852 pages, with over 180 Practical Pointers that are placed at the end of each chapter. These are hands-on.
  • 38 Examples (1-to-4 page real-life stories from Mike's actual experiences working with valuation issues in all areas covered by the book)
  • 25 Golden Suggestions for avoiding/reducing/resolving conflict with the IRS
  • 44 Helpful Charts and Photos scattered throughout the book
  • 233 Need-to-Know IRS Terms in a special IRS Glossary
  • 150 Acronyms for Valuation professionals
  • Audit Process Chart, Negotiation Process Chart, Negotiation Strategies Chart
  • 3 full Job Aids covering most the common areas of valuation friction between Taxpayers and IRS written by original champion with up-to-date commentaries by that same champion plus inputs by many other valuation professionals who were specially solicited for comments for this edition by the author

Business Valuations and the IRS provides you with what you need to know if you are preparing a business valuation report for federal tax purposes. This hardcover book contains 852 pages and includes 38 examples to help you.