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.

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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.

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Contact MPI

Contact us for more insights on Kress v. U.S. or for an expert valuation opinion:

Direct Contact:
Todd G. Povlich, CFA, ASA
212-390-8310 | tpovlich@mpival.com