If IRS Imposes a Penalty, That Penalty Cannot be Negotiated as Part of a Settlement on Another Tax Matter The Internal Revenue Service is opposed to negotiating penalties with noncompliant taxpayers, a stance that should benefit appraisers and tax advisors because individuals will be required to assume more responsibility for their deductions, Bloomberg BNA (subscription required) reported this month. Appraisers News Online offers details at its site:
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A Majority ≠ Control or Liquidity Examining actual transactions in the private capital markets and court outcomes figure into whether holding a large block of stock equates with it control or even a premium. The internal and external factors, legal provisions, and property performance drive this result.
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How Forensic Accountants Can Aid Auditors in Risk Assessment Should an assessment of corporate culture be a factor auditors should consider as part of a risk assessment process? These authors think so. Find out why.
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One Medical Practice Could—Depending on How Rules of Thumb are Applied—be Valued at Several Radically Different Prices. Find Out Why! Paul Hyde, in a recent Around the Valuation World™ in 90 Minutes webinar, explained why rules of thumb are dangerous to rely on for valuation. The focus of his argument relied on six simple graphics that illustrated how the value of one hypothetical medical practice could—depending on how a rule of thumb is applied—be assessed at either $800,000 or $200,000 . . . or any number of different variations in between!
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Careful Estate Planning Overcomes IRS Objections Even After Sudden Death Keller v. United States resulted in a huge family limited partnership (FLP) win—$125 million—in Fifth Circuit Court. In this article, learn what the lead attorneys at the Dallas-based law firm of Meadows, Collier, Reed, Cousins, Crouch, and Ungerman have to say about FLP planning and their victory as well as what every financial advisor can learn from this monumental taxpayer victory.
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There Has Been a Drop in Deal Volume, per GF Data. But Here’s Why it Hasn’t Affected Prevalent Values. Bob Wegbreit offers data confirming what private equity buyers and financial professionals have sensed since the beginning of the year—that the explosion in deal activity heading into the end of 2012 carried no momentum into 2013. Still: while deal volume has declined, valuations haven’t. Find out more.
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How to Work with Generation Y Lawrence Horwich explains what interests Gen-Y employees and how to create an environment within your firm to engage their interests. Find out more.
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A Calculation of Value is Not an Opinion or a Conclusion Dave Cooper and Bob Brackett answer common questions about standards and compare calculations of value to other services provided by valuators. Read more.
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Forensic Accounting Requires Nuance Performing forensic accounting in front of the Justice Department is like a wild rollercoaster ride, explains John DeLuca. Here’s why.
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More Detail on Obligations Included in Minimum Lease Payments Required Under ASC 840 Grant Thornton’s On the Horizon web publication explains that leasing agreements vary in their specific accounting requirements when it comes to assessing — and retiring the value of — leases. Here’s more:
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Find Out the Specific Requirements a Valuation Needs to Include to Pass Muster with the SBA Matt Stelzman explains in The Chattanoogan that the Small Business Administration (SBA) has loans available that can help small businesses make it to profitability, self-sufficient revenue, or at least the next round of funding — but in every case these loans require independent valuations. Here’s more:
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Requiring Valuation Analysts to Have Specialized Trainingk Credentials, and to Adhere to Professional Standards Will Protect ESOP Participants and Beneficiaries CPA Practice Advisor reports that the President and CEO of the American Institute of CPAs (AICPA), Barry C. Melancon, CPA, CGMA, has publicly announced his organization’s support for a new bill in the House of Representatives. H.R. 2041 would modify the definition of fiduciary under the Employee Retirement Income Security Act of 1974 to exclude appraisers of employee stock ownership plans. Here’s more:
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ASCs That Have CON Protection Have Higher Value—But Less Longevity. Todd Mello, Partner and Co-founder of HealthCare Appraisers, and Nicholas Newsad, Senior Associate at HealthCare Appraisers, opine in ASC Review that many ambulatory surgical center operators perceive increased economic value for those centers with certificate of need protection, multiple practice specialties, and the participation of orthopedic surgeons. While these factors may indicate relatively higher economic value, they do not necessarily correlate with business longevity. Here’s more:
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California Sanctions Husband for Hidden Account. Wisconsin Finds ESOP Was Properly Governed In White v. Marshall & Isley Corporation, the U.S. District Court for the Eastern District of Wisconsin dismisses a case asserting that employee stock ownership plan (ESOP) fiduciaries violated their duty of prudence. In re: Simmons, tried in the Court of Appeals of California, found the husband subject to additional sanctions for his failure to disclose a separate property savings account. Find out more.
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Technology Has Automated Many Accounting Tasks and Lowered Margins on Traditional Core Services. Here’s How to Stay Ahead Dustin Lubertazzi opines at AccountingWeb on what accountants must do to stay competitive in the future, and how technology will change the future role of the accountant. An excerpt:
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U.S. Patent Law Changes from “First to Invent” to “First to File” Standard. Plus: New Discount on Filing Fees for Small Businesses and Inventors This spring, patent law in the United States moved from a first-to-invent to a first-to-file system. The new law—called the America Invents Act (AIA)—puts the U.S. in harmony with most patent systems around the world, but it’s also a big change for inventors and other patent holders. You may have heard about the law before: It passed last fall. But it only went into effect in March. Here’s RocketLawyer on the new set of…
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A Disparity in Valuation Prices Between Companies Large and Small in Similar Industries Adds to Investment Challenges Jwalit Vyas at The Economic Times (India) illustrates how a wide disparity in valuation between companies large and small offers an additional challenge for business owners, investors, and financial consultants. Here’s more:
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US Securities and Exchange Commission (SEC) is Aggressively Policing Fund Valuation Practices in the Hedge Fund Industry Kris Devasabai at Risk.net reports that hedge funds, under pressure from regulators and investors, are establishing robust pricing policies for hard-to-value assets. They are also hiring independent experts to price complex and illiquid assets as investors and regulators intensify their scrutiny of valuation practices. Here’s more:
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An Overly High Valuation Can Scare Away Investors or Spark a Down Round that Dilutes an Earlier Angel Investment Mark Boslet at PE Hub explains that with IPOs on track to have their biggest year since 2010 and some major technology disruptions sparking infectious excitement, it’s important to keep in mind key fundamentals including not accepting too high a valuation for your business or investment properties. Here’s why:
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Industry Moves to Enhance Transparency of Investments Holding More Than $93 Billion in Assets The Investment Program Association (IPA), a trade association for non-listed, direct-investment vehicles, announced recently the adoption of the IPA Practice Guideline for the valuation of publicly registered, non-listed real estate investment trusts, The Wall Street Journal reported. Here’s more from a Globe Newswire report the article cites: