How to Write a Valuation Report for the IRS
Part I: Understanding how the IRS is organized and the separate cultures within the IRS divisions are important to know how to work with the IRS. This session introduces the framework for what the IRS is looking for in a valuation report and explores how the IRS looks at a business valuation in the Small Business Self Employed Estate and Gift tax area as well as the Large Business and International area. The IRS uses experience and professional standards to explore the valuation report and applies professional standards when exploring appraiser penalties. Valuation standards are explored from the perspective of the AICPA, NACVA and IRS business valuation standards. All IRS business valuators are trained using NACVA and IRS business valuation standards.
Part II: Based on Mike’s experience and feedback from the US Tax Court, US Court of Claims, US District Court, individual federal judges, IRS litigation attorneys, IRS Appeals Officers, IRS valuation managers, and IRS valuation specialists a listing of the most common errors are summarized and discussed. In addition, having joined the private sector what types of mistakes has Mike seen when assisting experts going before the courts? Questions are asked of the audience regarding their own quality control processes. Having discussed the most common errors, participants are asked to step back and think strategically about growth in the business valuation field and what steps the firm might want to consider from a host of issue areas from estate and gift tax valuations to international valuations. Major steps associated with strategic thinking are presented for participants to consider about their own situations going forward.