As a member of The AAA-CPA Weekly Update, you will receive occasional messages from one of our sponsors. You may unsubscribe from future sponsor emails by clicking here.

SKMB P.A. - Tremendous Success
SKMB, CPA

skmb-cpa.com

IRS allows a 35% discount on an amended business valuation of a Corporation with one stockholder


irs-refund
quote-icon
- Estate Executor -
top-point
The IRS Wrote My Client a Check for $2,689,269
It started with a valuation by the IRS that was way higher than it should be.
h-line

My client was an estate that had filed an Estate Tax Return and had paid substantial Estate Taxes, This estate included two companies owned 100% by a single stockholder. Both had been taxed based on valuations performed by a nationally recognized valution firm. One was at $17.8M, the other at $7.7M.

The larger company was valued with no discount, despite being a holding company for several diverse companies, which would be very difficult to sell. The smaller had a small valuation discount, but was dependent on only one client for almost all its revenue.

Keep reading below for what I did. It was worth millions to my client.

Please visit us at www.skmb-cpa.com

bottom-point
icon
We Are SKMB

At SKMB, we are proactive communicators and dedicated collaborators. Accounting is far more than handling taxes. We work closely with our clients, establishing a comprehensive strategy that will maximize efficiency and minimize waste year-round.

www.skmb-cpa.com

Ed Bortnick

 

Edward A. Bortnick, CPA, CVA, CFD, MAFF, CFF
I've been a Principal since 1977. I focus on litigation services, specializing in valuations, bankruptcy, and divorce. Call me at 301.468.7700 or email me at ebortnick@skmb-cpa.com.
top-point
I Found Precedents That Saved My Client Millions
Research showed this wasn't the first time the IRS valuated high and the courts said no.
h-line

My research discovered cases where the courts awarded substantial valuation discounts for corporations with one stockholder. The IRS allowed the larger company a lack of marketability and a mix of assets discount totaling a 35% discount. The smaller company had one major customer, and ther for was worth an additional 11% discount due to risk.

I filed amended returns with the IRS. After getting through appeals and the joint committee, the return was approved and my client received a check for $2,689,269.

This wasn't even my first such experience. A previous estate client received a refund of $1.6 million for a wholly owned ownership position based on my amended valuations. Once could be a fluke, but that's two big checks back for my clients.

Please visit us at www.skmb-cpa.com
If you are not up to date on court cases containing valuation discounts we would be happy to review any business valuations contained in the 706 or other matters such as marital or stockholder disputes.

bottom-point
top-ribbon
Don't Leave Millions on the Table
We work with estate attorneys to get documented, justified valuations that save clients money, sometimes large sums, in taxes.
www.skmb-cpa.com
Copyright © SKMB P.A. , All rights reserved

IRS Circular 230 Disclosure: To comply with requirements imposed by the Department of the Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, or (ii) supporting the promotion or marketing of any transactions or matters addressed herein.)

This electronic message transmission contains information from the accounting firm of Simon Krowitz Meadows & Bortnick, P.A. that may be confidential or privileged. The information is intended solely for the recipient and use by any other party is not authorized. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you have received this electronic transmission in error, please notify us immediately by telephone (301-468-7700) or by electronic mail skb@skb-cpa.com). Thank you.

7701 Las Colinas Ridge, Ste. 800, Irving, TX 75063