Want the IRS to Use Your Own Business Valuation Against Your Heirs? Then Read This.

This warning comes from my NAPL colleague, Bruce Perlstein, who specializes in Business Valuations that are often used in Estate Planning. Bruce is one of very few Accredited Valuation Analysts with print and graphic communications industry expertise.

Memo to Owners of Print and Graphic Communications Companies:

    "Be careful when you ask for a business valuation EVEN IF IT IS INFORMAL. The IRS can use informal write-ups that brokers routinely provide as well as any more sophisticated business valuation reports from accountants, etc. The IRS can do this even 20 years from now if the IRS audits your estate in seeking to collect estate taxes. The fines, penalties and interest expense could put your heirs at risk."

Key Point: The key for reducing risk is to be clear on the purpose for the Business Valuation, and to understand that "one size does not fit all". The best alternative is to obtain a customized Business Valuation prepared by industry-specific experts at NAPL.

Comments

[David Uno]

Interesting point. Thanks for the tip.