How to Conduct an S-Corp Valuation for the IRS Given IRS Internal Memorandums

Two recently obtained internal IRS memorandums are shared so that you can work more effectively with the IRS on estate and gift tax valuations.

These memorandums shed light on how the IRS approaches valuing S corporation valuations and what you need to consider when preparing an S-corporation valuation for federal tax purposes.

The memorandums recommend consideration of both Revenue Ruling 59-60 and the IRS Job Aid on Non-Controlling Interests. 

Key elements of these publications are shared and the applicability of the Job Aid on Discount for Lack of Marketability are applied.

Participants will:

• Understand the background and gain insights into the IRS Job Aid on valuing non-controlling interests in S corps.
• Understand the IRS S corporation valuation procedures memorandums
• Understand the potential ramifications of the IRS S corporation valuation procedures memorandums
• Know what steps to consider given the IRS S corporation valuation procedures memorandum
• Know how to approach an audit by the IRS if tax affecting was applied to a non-controlling interest
• Learn what mistakes to avoid should your appraisal be audited