Need an Asset Valuation? Make Sure to Get What You Pay For!

If a tax-exempt client needs a professional valuation of an asset, your understanding of how the IRS is going to regard the valuation — and the professional providing it — will be critical in ensuring the benefit of this action.

Since the 1996 enactment of I.R.C. §4958, which taxes excess benefit transactions, numerous published materials have highlighted the considerations in obtaining and relying upon a professional valuation.

Here, we narrow in on two technical issues that have complicated otherwise straightforward valuations for clients over the last several years. The goal is to raise awareness of issues and offer practical ...