Tax Valuation Services

When Tax Valuations Are Required

Business valuations are often required for gift, estate, and income tax purposes. When ownership interests in closely held businesses are transferred, reported, or restructured, the Internal Revenue Service (IRS) requires a professionally prepared valuation to support the reported value.

Tax valuations are commonly needed for:

• Gift tax reporting
• Estate tax returns
• Income tax valuations
• Business ownership transfers
• Allocation of assets during a sale or restructuring

Because closely held businesses do not have an active public market, determining their value requires a qualified valuation professional who can apply accepted valuation standards and methodologies.

IRS Requirements for Qualified Appraisers

The IRS has established strict guidelines regarding who is qualified to perform tax valuations. Under Section 170 of the Internal Revenue Code, a qualified appraiser must meet specific professional and experience requirements.

A qualified appraiser must:

• Hold an appraisal designation from a recognized professional appraisal organization or meet the minimum education and experience requirements established by the IRS
• Regularly perform appraisals for compensation
• Meet additional regulatory requirements prescribed by the Secretary of the Treasury

Additionally, an individual cannot be considered a qualified appraiser unless they:

• Demonstrate verifiable education and experience valuing the type of property being appraised
• Have not been prohibited from practicing before the Internal Revenue Service within the previous three years

These standards are designed to ensure that tax valuations are prepared by professionals with the expertise necessary to produce credible and defensible valuation reports.

Qualified Appraisal Requirements

For tax purposes, valuation reports must include a Qualified Appraisal and Appraiser Declaration, which confirms that the appraisal has been prepared in accordance with IRS regulations and professional valuation standards.

Proper documentation and compliance with IRS guidelines are critical to ensuring that valuations withstand review during tax filings or potential audits.

Why Choose Value Defined

Value Defined has extensive experience preparing tax valuations that comply with Internal Revenue Code requirements and professional valuation standards.

Garth M. Tebay is fully qualified to prepare tax valuations and has decades of experience performing valuations for tax reporting purposes. Our team understands the complexities of IRS regulations and ensures that every valuation report meets the necessary documentation and professional standards required for tax compliance.

When selecting a valuation firm for tax purposes, it is essential to work with professionals who have the education, credentials, and experience necessary to produce a defensible valuation.

Value Defined provides the expertise and reliability needed to support accurate and compliant tax valuations.

Return to Main Services Page