FOR IMMEDIATE RELEASE
Contact: Jeff Faust
Director of Business Valuations
510-797-8661 x249
jfaust@groco.com

THE IRS RELEASES BUSINESS VALUATION GUIDELINES

Fremont, CA - August 4th, 2006 - On July 27, 2006, the Internal Revenue Service released its new Business Valuation Guidelines.  The purpose of the document is to provide guidelines applicable to IRS Valuation Engineers, Appraisers, Valuation Specialists and others engaged in valuation practice (referred to as “Valuators” in the document) relating to the development, resolution and reporting of issues involving business valuations.

The new guidelines have included many of the changes submitted during the comment period from practitioners in the business valuation community.  The new guidelines are added to the Internal Revenue Manual as IRM 4.48-4, Engineering Program, Business Valuation Guidelines.

The background to the guidelines notes that: “This material is the product of the Valuation Policy Council (VPC), a cross-functional committee with executive representation from LMSB, SBSE, and Appeals.  The VPC was established in 2001 to assist IRS leadership in setting direction for valuation policy that cuts across functional lines, and in identifying process improvements to improve compliance and better utilize resources.”

Do these new guidelines impact GROCO Valuations?  No, GROCO already adheres to the Professional Standards set forth by the National Association of Certified Valuation Analysts (NACVA) and the Uniform Standards of Professional Appraisal Practice (USPAP) as set forth by the American Society of Appraisers (ASA).  The IRS guidelines, in many ways, echo the standards set forth by many of the appraisal societies.  In addition, the IRS document includes the International Glossary of Business Valuation Terms that many appraisal organizations have already adopted, including the ASA and NACVA.  A copy of the glossary is already on GROCO’s website at: http://www.groco.com/services/valuationglossary.aspx  The guidelines do; however, contain a new sections on workpapers and reviewing a business valuation, which will be helpful to taxpayers and analysts who are interested in knowing what the IRS is looking for when they review a valuation and the workpapers that accompany them.

The guidelines are available on the NACVA website in entirety at http://www.nacva.com/PDF/IRS_BV_Guidelines.pdf or just the section on Business Valuations at http://www.nacva.com/PDF/IRS_Guide_02.pdf

These guidelines were released as a part of the recent Pension Protection Act of 2006, which was signed into law by President Bush on Thursday, August 17th.

About Greenstein Rogoff Olsen & Co., LLP

Greenstein Rogoff Olsen & Co. are the CPAs for Silicon Valley's most successful people. Consistently ranked as one of the top accounting firms in the San Francisco Bay Area, Greenstein, Rogoff, Olsen & Co is a full service CPA firm providing accounting, tax, financial, and strategic planning for the highly successful. In business since 1964, GROCO has offices in Fremont, Palo Alto and San Francisco, California. We provide consulting services to high net-worth individuals and closely held businesses and have special expertise in providing accounting services to the leading Venture Capital partners in the Silicon Valley.

Our primary services include income tax planning, income tax preparation, strategic business consulting, business valuations, bill paying, estate planning, estate administration, trustee services, and financial statement preparation. Our clients have participated in building companies like Google, Skype, America Online, Oracle, Sun Microsystems, Compaq, Macromedia, Ebay, and Genentech. Access www.groco.com for more information.

GROCO continues to grow with the recent formation of their business valuation department which handles stock options (409A and FAS123R), employee stock ownership plans (ESOP’s), estate and gift taxes, family limited partnerships (FLPs), charitable contributions and marital dissolutions as well as business planning and corporate reorganization issues.

For questions or comments, please feel free to contact Jeff Faust at (510) 797-8661 x249 or jfaust@groco.com.

GROCO: Trusted Advisors to the Highly Successful - Since 1964.

FOR IMMEDIATE RELEASE
Media Contact:
Dennis Wolfe
P: 510.797.8661
F: 510.797.1791
dwolfe@groco.com