On March 25, 2019, Chief Judge William C. Griesbach of the U.S. District Court for the Eastern District of Wisconsin issued an opinion that resolved a federal gift tax dispute case where business valuation was the sole issue.
The combination of the court’s acceptance of tax affecting an S corporation’s earnings, tax affecting by the Internal Revenue Service’s expert, and the court’s determination that no S corporation premium applies resulted in a monumental development in the valuation of pass-through entities for federal estate and gift tax purposes.
The Latest Development in Business Valuation: Burdens of Proof, Tax Affecting S Corporations, and Chapter 14 in Kress
Read this article co-authored by MPI’s Todd G. Povlich and published by Bloomberg BNA to learn more about the Kress federal gift tax dispute case and its impact on business valuation.
Kress v. U.S. – A Breakthrough in S Corporation Valuation
This MPI blog by Todd G. Povlich provides an insightful summary of the Kress v. U.S. court case. Kress should be considered as support for tax-affecting the earnings of an operating business structured as a pass-through entity for income tax purposes.
Contact us for more insights on Kress v. U.S. or for an expert valuation opinion: