New IRS filing requirements for executive compensation will require FMV determinations
According to the most recent client alert by Fenwick & West LLP, the IRS has issued two forms (along with accompanying instructions) that corporations must use to satisfy the return and information statement requirements under IRC Section 6039: Form 3921, required when an employee (or former employee) exercises an incentive stock option (ISO); and, Form 3922, [...]
IRS reissues proposed regs on alternative valuation date
The Internal Revenue Service has just issued new proposed regulations on electing an alternate valuation date for an estate, withdrawing earlier regulations issued in 2008. According to a published notice in the Federal Register (Nov. 18, 2011), “the proposed regulations will affect estates that file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and [...]
IRS expert presents new fractional interests model tomorrow!
When we first broke the news about the IRS’s fractional interest model at the most recent ASA IRS National Symposium last spring, the halls were buzzing with appraisers’ debate, discussion, and even dismay. As the BVWire reported, the “minority premium model” takes fractional interest calculations through several levels of minority vs. majority ownership, and concludes that [...]
Filings for 2010, 2011 decedents: new insights on IRS requirements, including determining FMV of undivided interests
Last August, the Internal Revenue Service released Notice 2011-66 , concerning the methods for electing and applying a carryover basis treatment under Sec. 1022 of the Internal Revenue Code (IRC) to 2010 estates, and Rev. Proc. 2011-41 , providing optional safe harbor guidance under Sec. 1022 IRC. In a detailed, thorough analysis, Steve Akers (Bessemer Trust) summarizes what’s [...]
Is the IRS ‘overcritical’ of data sources in its DLOM Aid? (download it for free at bvresources.com)
Attorney and BV insider Paul Hood provides an executive summary of the IRS Discount for Lack of Marketability Job Aid on his recent blog, The Business Valuation Reviewer’s Handbook. “On the whole, the Job Aid is fairly well done,” Hood says, although it is not without its problems. For instance, “the Job Aid left out several other DLOM [...]
Discount for Lack of Marketability Job Aid for IRS Valuation Professionals available as free download from BVR
If you’d like a copy of the September 2009 Discount for Lack of Marketability Job Aid for IRS Valuation Professionals, created under the leadership of Mike Gregory and a number of other top IRS valuation experts, it’s now available at the free downloads page at BVR. It’s a must-read for any business appraiser who does [...]
‘Minority premium’ model may not comply with FMV standard
The recent BVWire item, “New model says any fractional discount above 30% merits serious consideration and support” inspired Robert Buchanan (PCE Valuations) to write: “‘Minority Premium’? Really?” i in PCE’s newsletter All About Value. “Much of the logic behind the model and the theory are valid in a world where one considers specific buyers,” says [...]
Fourth tax case to uphold defined value clause
In a long-awaited decision (two and a half years after trial), the U.S. Tax Court just upheld the defined value formula clauses that set the fair market value of transfers of private company stock in a gift/sale transaction. The defined value clauses—which limit gift tax exposure from the transfers—were not contrary to public policy, the [...]
ASA training courses for the year kick off next week!
Our friends at the ASA wanted BVWire to remind every one of two top-tier CPE opportunities next week. ASA is offering BV201, BV204 and BV301 (Intangibles) classes January 13-16 in Los Angeles. There are still spaces left, And, the ASA’s Advanced One-Day Current Topics in Fair Value Conference is January 12 in New York City, at [...]
Practice advice for appraisers facing an IRS appeals process
Diane Ryan is the IRS’ Chief of Appeals. “I’d like to give you some practice tips you can use,” she said. speaking at BVR’s Tax and Valuation conference in DC this morning. “We see every kind of work stream in my office. It’s a fascinating place to be in tax because you see everything.” The [...]
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