The Value of Management’s Forecasts in an ESOP Valuation

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Recently, the United States Department of Labor (DOL) has been extremely aggressive in challenging transactions involving Employee Stock Ownership Plans (ESOPs). There are numerous current DOL investigations of ESOP transactions, and valuation takes center stage upon DOL scrutiny. These elevated trends are expected to remain for some time in the future. In reference to scrutiny […]

“Fair to Everyone” is Unacceptable in an ESOP Transaction

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On Friday August 2, 2019, U.S. District Judge Norman K. Moon in the U.S. District Court for the Western District of Virginia ordered that Adam Vinoskey, the CEO of Sentry Equipment Erectors, Inc. (Sentry), and Evolve Bank and Trust (Evolve) are jointly liable for the losses an employee stock ownership plan (ESOP) suffered in a […]

NCEO 2019 – Employee Ownership Conference

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As the nation’s premier gathering on employee ownership, the NCEO’s annual conference provides an ideal opportunity to learn, network, and share your knowledge with others. Our 2019 conference will take place in Pittsburgh, PA (April 9–11, with preconference on April 8) and will build on the sold-out success of our 2018 conference in Atlanta, where […]

Brundle ESOP vs. Wilmington Trust: A Trustee’s Fiduciary Responsibility

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On March 21, 2019, the U.S. Court of Appeals upheld a ruling that Wilmington Trust NA, (Wilmington Trust) a “premier provider of wealth and institutional client services for M&T Bank,” headquartered in Delaware, overvalued stock, causing the company’s employee stock ownership plan (ESOP) to overpay $29.8 million. The Virginia company, Constellis Group Inc. (Constellis) “provides […]

Cost Segregation Analysis After the Tax Cuts and Jobs Act

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Practitioners and taxpayers alike continue to try and assimilate the many changes to the Internal Revenue Code that were enacted into law under the Tax Cuts and Jobs Act (TCJA) in December 2017. Media coverage has included significant commentary about the major and direct changes included in that tax bill, including the significant lowering of […]

Tax Court Disallows Charitable Deduction of Remainder Interest

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In a very significant case, the United States Tax Court found that a limited liability company (LLC) was not entitled to a charitable contribution deduction for the donation of a remainder interest in real property because it failed to adequately substantiate its claimed deduction. The Form 8283 (appraisal summary for noncash charitable contributions) the LLC […]

Department of Labor Wins Important ESOP Case

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An employee stock ownership plan (ESOP) is a retirement plan that is permitted to invest some, or all, of its assets in employer stock. ESOP plans are often sponsored by small or mid-sized, closely held firms that are not traded on any public exchange or capital market. As such, there is no way of knowing if […]