A Former Insider’s Views on the Subject of Compensation What is reasonable compensation? In this article, Michael Gregory proposes that while the views of the U.S. Tax Court are well-understood, those of the IRS are not. In this article he underscores the importance of this matter to business valuation professionals.
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With Commentary by Original IRS Champion Leading valuation practitioners have proposed various models to guide practitioners valuing controlling and non-controlling interests. The published Tax Court cases—precedents—have favored the position of the IRS. The author suggests that is not surprising. In a soon-to-be released book, Michael Gregory highlights the importance of a new Job Aid focused on valuation of S corporations.
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Willamette Management Author Explains: What You Need to Know About DLOMs Aaron Rotkowski explains why it’s appropriate to apply a DLOM to a controlling ownership interest—and how to figure it—and why it doesn’t make sense to rely on restricted stock studies and pre-IPO studies to estimate the DLOM for that interest. Find out more.