We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byClarence Manning
Modified about 1 year ago
For the Estate Planning Council of Central Florida November 14, 2013 Michael Gregory Michael Gregory Consulting LLC
Michael Gregory, Chief Manager, Michael Gregory Consulting LLC since September 12, 2011 Formerly IRS 28 Years as Engineer and Valuer, Manager, Operations Team Lead, Controller, Acting Assistant District Director, Territory Manager Qualified Neutral Supreme Court in MN, ASA, CVA, and MBA November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Risk Management, BV Review, and IRS Assistance Alternative Dispute Resolution Strategic Planning and Value Added Services Will Go Over Some Examples Could be of Service to You and Your Clients firstname.lastname@example.org 651-633-5311 November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
The opinions presented here are those of Michael Gregory. Michael Gregory does not represent the IRS. Any opinions presented in this seminar are those of the author and do not represent an official position of his current or previous employers. This material is offered for educational purposes only. The author and his employer expressly disclaim any liability, including incidental or consequential damages, arising from the use of this material or any errors or omissions that may be contained in it. November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
How to Work with the IRS: Strategies for Attorneys, Accountants and Appraisers (June 2011) Business Appraisals and the IRS (May 2013) Valuing Interests in S-Corps (July 2013) DLOMs and the IRS (September 2013) November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
IRS Background Estate and Gift Tax at the IRS IRS Classification and Processing Steps You Can Take Working With the IRS on Valuation Issues Issue Resolution Three Technical Areas November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Historical Perspective Today Eleven Divisions with External Stakeholders Compliance Divisions-Since 2000-Different Cultures Appeals Counsel – IRS and DOJ Tax Litigation Division Your Primary Interest is with Estate and Gift (E&G)Tax Attorneys in the Small Business and Self Employed Division, (SBSE) but could relate to the Large Business and International (LB&I) and Business Valuators in Engineering November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
“Estate and Gift” ◦ Forms and Publications Pub 950 Intro to E&G Taxes – Marketing Information From 709 US Gift (and Generation Skipping Transfer) Tax Return SOI Statistics – 18% of Estates and 1.2% of Gifts Audited in the Field from the 2011 Data Book What’s New in Estate and Gift Audit Technique Guides – Aerospace to Wine with over 50 Topic Areas (See auditing Attorneys) November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Examination and Collection Functions Examination ◦ General Team Manager and Revenue Agent ◦ Estate and Gift (E&G) Classification Process (Cincinnati and Ogden Service Centers) 706 and 709 to Cincinnati Certain Projects Ogden E&G Manager with Estate Tax Attorney Information Document Requests Counsel November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Case Manager and Team Coordinator Six Industries and One Support Function CTM, FS, HMT, NRC, RFPH, and GHW Specialists – Internal Consultants ◦ Engineering and Valuation Note Geographic Location Note Specialization ◦ Computer Audit Specialists ◦ Financial Products ◦ Economists ◦ International Examiners Counsel November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Why Engineering Title? Internal Consultants to All Divisions Four Territory Managers 34 Front Line Managers 320 Technical Employees Valuators Locally – Real Property and Business Valuation Know Who They Are and Invite Them to Professional Meetings November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Case Closes Out of Examination Unagreed and Goes to the Internal IRS Appeals Division Goal to Settle Cases Independent Ex Parte Rules Ways to Approach November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
IRS Office of Chief Counsel ◦ Operations ◦ Technical All Non Litigation Work (legislative, regulation, interpretation) Corporate International Technical Advice IRS Division Counsel IRS Special Trial Counsel DOJ Tax Litigation Division November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Issue Resolution ◦ Lowest Level ◦ Emphasis on Timeliness, Understanding, Enforcement, Integrity, Fairness ◦ Factually Oriented – Resolution; not Hazards of Litigation Division Dependent What Level and With Whom are the Key? November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Managers and Employees “Trained” Awareness There Recent Commissioner Report on the Process ◦ More Authority Needed at Front Line Level ◦ More Training Needed 242 Cases with 572 Returns 124 Cases or 51% Fully Resolved Average Time Frame 86 Days – Goal 60 Days – Now at 104 Days Normal Case Not in Formal Mediation – When to Elevate and to What Level? November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Field Specialists Engineers and Valuators Trained in Mediation ◦ Informal Process ◦ Model – FIFI What are the Facts? What are the Issues? How do you Feel about this? What are your Interest? Now lets explore solutions. November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Employees Trained in the Process of Mediation DVD Made for New Hires Elevation in Management is Sometimes Needed to Explore the Process Elevating in Management is Encouraged When Differences Are Associated with Other Than The Technical Issue If Not Resolved When to Elevate and to What Level? November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Who Owns the Case? Who Manages the Case? What is the Role of the Valuator? If you Have Frustrations with the E&G Attorney Who Should You Contact? If you Need a Real Property Appraiser or Business Valuator What Should You Do? Coming up Next… November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Discount for Lack of Marketability -Job Aid for IRS Professionals 9/25/2009 published 8/22/2011 Data Sources ◦ Private Placement Step 1Pluris Step 1 Fair Market Value Opinions ◦ Pre-IPO Recommended Approaches ◦ Restricted Stock Studies and Factors ◦ Private Placements Step 1 and Factors ◦ Third Method and Reconcile November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Six Court Cases ◦ Key Findings from the Estate of Louise Paxton Gallagher TCM 2011-148 ◦ Take Away Information Prominent Methods Suggestion on Approach for IRS Purposes Work with Your Business Valuation Appraiser November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Read the Document Have Attorney Provide Opinion on Limited Interest Ownership Rights Consider Approval Rights for Major Decisions ◦ Unanimous Decisions ◦ High Percentage Decisions ◦ Majority Decisions Business Purpose, Contributions, Distributions, Term, Withdraw, Right of First Refusal, Transferability, Fire General Partner, Dissolution, Restructure Agreement FMV and Discounts November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Legal Requirement for an Appraisal When Might a Calculation Report Be Acceptable on Audit? Does Your Client Need a Real Property Appraisal? What a Business Appraiser Needs to State in Limiting Conditions without a Real Property Appraisal Implications on Classification November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
SBSE Examination Case with a Business Valuation Issue-Publication 1 Concerns ◦ Boston, Denver, Florida, Georgia, New York, North Carolina, Philadelphia, San Francisco, San Antonio SBSE Examination Case with IRS Counsel or DOJ ◦ Understand Roles of Attorney and Appraiser ◦ Work to Resolve – Prepare Report for Judge SBSE Case at Appeals ◦ Understand ExParte ◦ Understand New Information and Mediation November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
SBSE Examination Case with a Business Valuation Issue ◦ 6 months on Statute ◦ No IRS Valuator/Appraiser ◦ DLOM only Issue ◦ DLOM Paper Applied to Facts Issue Resolution – High Wealth Example ◦ Three Siblings and Charities ◦ Resolve with All November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
LB&I and SBSE Planning ◦ Initiate Process with High Wealth Individuals Ahead of Time ◦ Family Issues – Mediation Approaches ◦ Plan Out Company and Wealth Transfer 6695A Appraiser Penalties Impact on Appraisers ◦ Know the Rules ◦ Appraisers Need to Follow Standards 6661 Overvaluation and Substantial Understatement Penalty on Return November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Know Who Your Working with at the IRS Understand the Role of Participants Seek to Understand Interests Do Not Be Afraid to Ask Questions Consider Options ◦ Ask for a Business Valuator or an Appraiser ◦ Ask to Elevate in Management as a Neutral Party Given Ownership of the Issue by the RA or ETA November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
IRS Official and Unofficial Rules of Engagement IRS Organization My History and Best Practices Issue Resolution and Mediation at the IRS Classification in General and Estate and Gift in Particular Potential Penalties on Appraisers Reasonable Compensation in Corporations Discounts for Lack of Marketability Most Common Errors in Valuations Strategic Growth Areas of Business Valuation Appraisers Other Engineering Issues and Valuation Related Issues Strategic Thinking Overall Commentary and “Do’s and Don’ts” November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
1. Overview of Chapter Contents 2. Classification in General and in Estate and Gift Tax in Particular 3. Writing a Business Valuation Report for IRS Tax Purposes 4. Potential Penalties on Appraisers 5. Considerations in Valuing Interests in Subchapter S Corporations 6. How to Address Reasonable Compensation in Corporations 7. Code Section 409A and Valuators 8. Discount for Lack of Marketability and How to Approach the Issue 9. Most Common Errors in Valuations and How to Avoid Them 10. Potential Growth Areas for Business Valuation Appraisers 11. How to Work with the IRS to Resolve Differences in Valuation 12. Key Take-Away Items for Business Valuation Appraisers November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
From Chapter 5 in Business Appraisals and the IRS Pulled This Chapter from the Book Given Customer Feedback Covers the Material in This Presentation with 2 Example Comparisons Sixty Three Pages in Length November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
Uses the Discount for Lack of Marketability Job Aid for IRS Valuation Professionals Published August 2011 Supplemented With Commentary from Modelers Critiqued in the Original Job Aid Michael Gregory’s Commentary Based on IRS and Private Sector Reviews of Scores of Reports for Expert Witnesses Specific Recommendations November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Michael Gregory Consulting, LLC firstname.lastname@example.org www.mikegreg.com 651-633-5311 1945 Sharondale Ave. Roseville, MN 55113 Contact me with any questions or concerns November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
November 14, 2013 © 2013 Michael Gregory Consulting LLC firstname.lastname@example.org
November 14, 2013 © 2013 Michael Gregory Consulting LLC email@example.com
Tax Executives Institute Minnesota Chapter TEI/IRS Liaison Meeting May 19, 2015 Jessica Samuel, Territory Manager, RFTH.
Richard Philp New Zealand Inland Revenue Department Session No. 7 Conclusions for tax policy and revenue administration from compliance studies, perception.
CIAT General Assembly Large Business Verification Sectorial Specialization Elvin Hedgpeth LMSB, US IRS.
Legal Requirements for School Bonds C.A.S.H. Local Workshop Planning for 2016 Local Bond Success September 22, 2015 and September 29, 2015 Presented by:
Chapter 1 An Introduction to Taxation. Learning Objectives Discuss the history of taxation Differentiate between three types of tax rate structures Describe.
Kick-Off to Sales For producer use only. Not for client presentation. Best-Kept Secrets to Generate Business-Owned Life Insurance Sales.
Assignment Six Risk Control and Premium Auditing.
Donating Complex Assets to Charity: Case Studies and Best Practices Ryan Boland Fidelity Charitable, Complex Assets Group.
(based on WCO PCA Guidelines, Vol.1). What PCA is/isn’t Objectives & benefits of PCA Process and considerations for introduction of PCA process.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle.
Chapter 3 Audit Planning, Types of Audit Tests, and Materiality McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
1 Chapter 4 Copyright ©2006 Thomson South-Western, Mason, Ohio William A. Raabe, Gerald E. Whittenburg, & Debra L. Sanders Administrative Regulations &
Sapient Insurance Partners. Overview & Services We have almost four decades of combined experience in the property & casualty insurance and reinsurance.
Indiana University Professional Opportunities Orientation Program September 17, 2002 Presented by: Brian Oliver Jeff Brown Financial Opportunities.
GE (08/08) Small Business Protection Strategies Securities are offered through AXA Advisors, LLC, member FINRA and SPIC. Life insurance and annuity.
The Do’s & Don’ts of International Contracts April 14, McLean, VA April 15, Norfolk, VA Presented by Vandeventer Black, in association with.
Greener Equity performs independent valuation and consulting services Greener Equity was founded in 2006 and is now among the premier valuation firms in.
Chapter 15 Tax Research. Learning Objectives Describe the steps in the tax research process Explain how the facts affect the tax results Identify the.
September 5, 2014 CCRESA Strategy Session © Confidential © Allen, Pinnix & Nichols, P.A. September 5, 2014 Central Carolina RESA Organization Formalization.
PA 330 – Medical Records – Unit 8 The Use Of Medical Consultants.
Martin Arnold Director - Research Analyst ETF Securities.
M&A International™ – the world's leading M&A alliance Common Errors in Business Valuation and How to Avoid Them April 8, 2013 Howard E. Johnson, MBA, FCPA,
LOBBYING RULES IN MASSACHUSETTS: ARE YOU A LEGISLATIVE AGENT OR AN EXECUTIVE AGENT? Robert E. Cowden III Casner & Edwards, LLP 303 Congress Street Boston,
CHAPTER 6 Strategic Approaches to Improving Ethical Behavior.
/ Title 1 UNCLASSIFIED ADR in Tax Disputes UNCLASSIFIED Debbie Hastings First Assistant Commissioner Review and Dispute Resolution.
E. N. Kemp & Associates, Inc. Aloha. BUSINESS VALUATION 101 Where do I begin to tell the story…...
Office of the Chief Tax Counsel Jean Cordue Acting Director Adjudication.
Chapter 12 Tax Administration & Tax Planning Income Tax Fundamentals 2013 Student Slides Gerald E. Whittenburg Martha Altus-Buller Steven Gill 2013 Cengage.
International Federation of Accountants Code of Ethics for Professional Accountants Overview.
0 Career Opportunities in Public Accounting. Introduction to Deloitte & Touche 1 Deloitte Touche Tohmatsu u Over 100,000 people worldwide u Over 30,000.
B.O.S.S. Workshops (Business Owner Strategy Sessions) A Succession Plan is Critical You will Exit your business. Who will be in control?
Preparing for a Sale of the Business Marc D’Annunzio Siavage Law Group, LLC November 10, 2010.
1 Chapter 3 Homework Violation of Commission Rule CPA cannot accept any form of commission related to a client for which he/she also audits or.
An Overview THE AUDIT PROCESS. MAJOR PHASES IN AN AUDIT Client acceptance and retention Establish terms of the engagement Plan the audit Consider internal.
T UCKER A LAN I NC. …business and litigation consulting.
States and Government Companies Murilo Barella Brasília – 12 Março 2013.
Learning The Basics Housing Tax Credit 101 March 5-6, 2009 The Blackstone Hotel Chicago, IL Susan Pristo Reaman.
Focus group on the Future of WACUHO Affiliation with ACUHO-I DEB SCHMIDT-ROGERS, ACUHO-I REPRESENTATIVE STEPHEN FLEISCHER, WACUHO PRESIDENT WITH THANKS.
EP Roles and Responsibilities for non legal advisers leading teams including lawyers. Michael Perkins TEP – Special Counsel.
GUIDING PRINCIPLES FOR THE FEDERAL ACQUISITION SYSTEM Michael K. Barrett, CPA, CPCM, PMP Barrett Consulting LLC Disclaimer: The views presented are those.
1 Planning an Audit The Audit Process consists of the following phases: Accepting the Audit Engagement Planning Performing Audit Procedures Reporting the.
Year 15: Nonprofit Transfer Strategies for Expiring LIHTC Properties Supportive Housing Network of New York May 5, 2009 Presenters: Gregory Griffin, Director,
Chapter 02 Tax Compliance, the IRS, and Tax Authorities.
Dispute Resolution Under the Congressional Accountability Act advancing safety, health, and workplace rights in the legislative branch Office of Compliance.
Part Two Audit objectives, Planning The Audit ＆ Materiality.
All information contained within this document is proprietary to Risk Limited Corporation. prepared by Commercial Real Estate Hedging & Risk Management.
CHAPTER SIX CULMINATION OF THE TAX RESEARCH PROCESS.
Captive Considerations What to know, What to avoid #[insert hashtag here]
© 2017 SlidePlayer.com Inc. All rights reserved.