ESOP appraisals by CPA firms.
Practitioners wanted to know the conditions for meeting these requirements by outside CPA firms providing audit and tax services to an employer. According to a projects leader for the IRS Employee Plans Technical and Actuarial Division, a firm will be treated as an independent appraiser (under Sec. 401(a)(28)(C)) if all of the following conditions are met:
* The firm represents itself to the public as an appraiser or performs appraisals on a regular basis. * The firm has a separate valuation division. * The valuation division performs services for a significant number of other companies. * Performance of the valuation does not cause a reasonable person to expect the appraiser to overstate the value of the employer's securities.
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|Title Annotation:||employee stock ownership plan|
|Publication:||The Tax Adviser|
|Article Type:||Brief Article|
|Date:||May 1, 1995|
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