With proper estate planning, significant wealth can be transferred in closely-held businesses or entities to the next generation. These transfers need to be documented and properly valued to satisfy the adequate disclosure requirements and begin the clock on the statute of limitations. Not surprisingly, these transfers have been and will most likely continue to be under scrutiny by the IRS. According to the IRS, approximately 100% of estate filings above $10 million and 58% of estates $5 to 10 million were audited. These figures were based upon the estate tax filings for 2011.
According to IRC Section 170, the IRS requires the use of a qualified appraiser when performing tax related valuations. A qualified appraiser “is an individual who has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements, regularly performs appraisals for which the individual receives compensation, and meets such other requirements as may be prescribed in regulations or other guidance.”
Estate & Gift Tax Valuations that Withstand IRS Challenges
At Valuation Advisory Services, valuation is our focus, we have the qualifications and experience to perform any valuation that would be used for any income, estate, or gift tax purposes. Rest assured that our valuations have withstood challenges from the IRS and have been used directly in negotiations with IRS cases. Please contact us today if you would like peace of mind concerning your estate or gift valuation.