The Impact of $80B and 87,000 Additional IRS Employees on Business
#PoisedforExit interviewed Michael Gregory today, who's background includes working for the Treasury department and as a financial analyst for several companies, both public and private. Mike launched his own practice in 2011 and specializes in mediation and negotiations with the IRS. In addition, he's written 11 books and delivers approximately 60 speeches per year to various professional advisory firms and their trade associations.
We focused today on how business valuation will be affected by the addition of all the new IRS agents and employees coming on board. Unfortunately, as Mike pointed out, these folks are new to their positions, who will take an average of two years to become seasoned enough to handle more complicated merger and acquisition transaction analysis and audit. Thus, the focus for these newbies will be on smaller transactions for the learning component it will bring, and we can expect that to occur over the next two or so years.
For advisors in several categories there will be plenty of extra work involved to prepare a company properly in order to avoid an after sale audit. Estate planning, accounting, valuation, and other services will likely expand to accommodate the additional anticipated IRS scrutiny.
For sellers, make sure the expenses your business pays for are true business expenses. Tell a full story on your expenses by documenting what they really are and why they are relevant to business operations when an item could be construed incorrectly.
You will likely want to listen to this episode more than once! You can find it here
Connect with Mike Gregory here and Julie Keyes here.
Thank you to our show sponsors! Dayta, JAK, Sunbelt Business Advisors and Trust Point
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- Business Readiness Transition online course
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