Hi Welcome to ValuationPodcast.com – A podcast and video series about all things related to business and valuation. My name is Melissa Gragg, and I provide online divorce mediation and valuation services in St. Louis Missouri.
Today we will discuss Changes in the IRS Business Valuation Community with a former IRS auditor Mike Gregory. Mike Gregory is the founder and owner of Michael Gregory Consulting, LLC. He brings 28 years of experience with the IRS in a variety of capacities from specialist to executive level. During his last 11 years with the IRS, Mike was an IRS territory manager with responsibilities for up to twenty-three states with an emphasis in business valuation and specialist issues nationally. Mike has written 12 books focusing on How to Work with the IRS, Business Appraisals and the IRS, Discounts for Lack of Marketability (DLOM) and the IRS, Reasonable Compensation and the IRS, conflict resolution, servant leadership, with his most recent technical book Business Valuations and the IRS: Five Books in One and his most recent leadership book The Collaboration Effect. Mike is located in Minneapolis Minnesota.
1. What are a few changes we can expect to see at the IRS relating to business valuations in 2022?
2. Has the IRS identified issues for audit in 2022?
3. What is an IDR (Information Document Request) and how does it relate to business valuation?
4. Why is an IDR necessary?
5. Do you have any federal cases relating to the IRS and business valuations you want to discuss?
6. What are a few tips for someone to avoid the IRS?
7. What steps should a person take if they are audited by the IRS?
8. Tell us more about you and your firm!
CVA, MAFF, CDFA
Expert testimony for financial and valuation issues
Bridge Valuation Partners, LLC
Cell: (314) 541-8163
NSA, MBA, ASA, CVA
Michael Gregory Consulting, LLC
Conflict Resolution Specialist | Speaker| Author
m. (651) 633-5311
Melissa Gragg (00:00:00):
Hi, welcome to valuation podcast.com, a podcast and video series about all things related to business and valuation. My name is Melissa Gragg and I provide online divorce, mediation and valuation services in St. Louis Missouri. Today, we will discuss business valuations and changes in the IRS for 2022 with a four IRS auditor. Mike Gregory. Mike Gregory is the founder and owner of Mike Gregory consulting, LLC. He brings 28 years of experience with the IRS and a variety of cap capacities during his last 11 years with the IRS. He was an IRS territory manager with responsibilities for up to 23 states with an emphasis in business valuation and specialist issues. Nationally he’s also was involved with creating and talking to the IRS about the discounts for lack of marketability and also reasonable compensation. The other book that he written is called the collaboration effect, which basically brings together neuroscience and kind of negotiation techniques in order for you to work with the IRS, if you needed to in some capacity. Welcome Mike Gregory. How are you?
Mike Gregory (00:01:20):
I am great. And thank you very much, Melissa.
Melissa Gragg (00:01:22):
Well, we are obviously talking to an expert on the IRS and really in the business valuation community. Some of the things that we get concerned about is creating these estate valuations and providing them to either attorneys or clients, and then they utilize them in a tax return when they’re doing gifting or other strategic planning, but a couple things that we don’t always know what’s happening is how the IRS views some of these business valuations and kind of what triggers them to take a closer look, right? Because that’s not really what we want them to to do. So what are the few of the changes that you can ex or we can expect to see that you’ve kind of identified in the IRS related to business valuations, that’s coming down the pipeline for 2022?
Mike Gregory (00:02:17):
Well, first of all, I wanna say the IRS has a goal to do a quality audit, the quality audit to find an internal revenue manual. The IRS also tells Congress each year they’re gonna do a certain quantity of returns. So a certain number of estate tax returns by different sizes or gift tax returns. Now they used to publish that and let the public know that until 2014, since then, they haven’t shared that with the public ahead of time. But every year they come up with the IRS data book and it says, this is what we did the previous year. And I’m gonna share some statistics out of that.