Tax Planning and Compliance Valuations

Why use valuations for tax planning and compliance?

Owners of closely held firms will frequently engage CPAs and tax attorneys seeking advice to minimize their company’s taxes and efficiently transfer assets to their beneficiaries. The fair market value of the firm’s stock often becomes a critical component in these strategies.

A valuation from an independent business valuation firm, like BVI, can provide needed support and offer critical defense of the appropriate value of the firm’s stock if it’s challenged by the Internal Revenue Service, or other taxing authority.

When are valuations necessary for tax planning and compliance?

Whenever business owners and executives are implementing a plan that requires an estimate of the fair market value of the company’s shares, including:

  • Estate tax return
  • Gifting to family members or other beneficiaries
  • C Corporation to S Corporation conversions
  • Stock option and deferred compensation plan adoption and execution
  • Acquisitions by non-profit organizations
  • Recapitalization or reorganization

Why use BVI?

BVI has completed hundreds of valuations ranging from start-up companies to firms that generate more than $1 billion in annual revenues. Our experience, technical expertise, and credibility in presenting well documented valuation reports to the IRS are some of the primary reasons that BVI is trusted as the valuation firm of choice for many business owners, CPAs, and attorneys.

BVI has experience in a wide variety of industries including healthcare, business services, technology, construction and engineering, food services, consumer goods, distribution, transportation and logistics, financial institutions, and others. We also have invested significant resources in our valuation process to efficiently use the time of business owners, executives, and their advisors.

Who can benefit?

Having a well documented estimate of the fair market value of a firm’s stock is critical to many tax strategies. Business owners, CPAs, and attorneys benefit from BVI’s services by having confidence that the value of the company’s stock is well-supported using appropriate valuation methodologies and well-documented using the facts and circumstances of each specific case. This information provides the firm’s advisors with the neccesary information they need in order to respond to challenges from the Internal Revenue Service or other taxing authority.