On April 30, 2015, the IRS made available to the public two documents which were authored to aid IRS Valuation Analysts with their work in the business valuation arena.
The first, Valuation of Non-Controlling Interests in Business Entities Electing to be Treated as S Corporations for Federal Tax Purposes: A Job Aid for IRS Valuation Analysts, provides an overview of the approaches and issues surrounding the appraisal of minority interests in pass-through corporations.
The second, Reasonable Compensation: Job Aid for IRS Valuation Professionals, provides commentary on approaches, sources, and considerations to be addressed in the examination of reasonable compensation cases.
These documents are both dated October 29, 2014 and until recently were attainable only through a Freedom of Information Request.
For additional information, please contact Brad Matthews, senior associate in the GYF Business Valuation and Litigation Support Services Group.
