L. Paul Hood, JD, LLM, co-author of A Reviewer’s Handbook to Business Valuation , recently published the article “Defined Value Gifts and Sales Under the Microscope: What’s Possible and What’s Not? – Revisited” in the July 2011 issue of Tax Management Estates, Gifts, and Trusts Journal, published by BNA Tax Management
In the article, Hood updates his 2003 article of the same name (published in the July/August 2003 issue of Tax Management Estates, Gifts, and Trusts Journal).
In the introduction, Hood writes:
There has been a lot of action in the arena of defined value gifts and sales since that article went to press. The IRS issued Technical Advice Memorandum (‘‘TAM’’) 200337012, the U.S. Court of Appeals for the Fifth Circuit reversed the Tax Court’s opinion in McCord v. Comr., the Tax Court issued decisions in Christiansen Est. v. Comr., Petter v. Comr., and Hendrix v. Comr., and the U.S. Court of Appeals for the Eighth Circuit upheld the Tax Court’s decision in Christiansen. At press time, it should be noted that the IRS has appealed Petter to the U.S. Court of Appeals for the Ninth Circuit.
Though difficult, this article will analyze defined value transactions in isolation of ‘‘factual baggage’’ that too often has muddied the waters of analysis of these transactions by the courts and by the IRS.