Appraisals for Tax Reporting

Every day, Americans are transferring securities which are difficult to value: shares in privately held companies, stock options and warrants. The tax rules are complex, the valuation nomenclature is arcane and violations can be expensive. Want to reduce the risk of an unpleasant tax surprise? Get a valuation report from an Orchard Partners.

409A Appraisals

The IRS rules for deferred compensation create potential tax exposure for employees receiving stock options. Non-compliance can lead to tax penalties for the recipient and withholding tax headaches for the issuer. A 409A appraisal provides evidence that the options have been priced at fair market value.

Revenue Ruling 59-60 

This IRS ruling outlines the approach, methods and factors to consider in valuing stock in privately-held companies for estate tax and gift tax purposes. Tax accountants and attorneys rely on Orchard for a report that will withstand IRS scrutiny. 

ESOP Appraisals

Regular appraisals are required for Employee Stock Ownership Plans. Orchard can provide an opinion of fair market value in compliance with Department of Labor regulations. 

S Corporation Conversion

A report from Orchard provides the IRS with an analysis of equity value when a C corporation converts to an S corporation.


An opinion from Orchard Partners provides a company issuing options with "safe harbor" from section 409A of the Internal Revenue code. This provision of the American Jobs Creation Act of 2004 exposes employees to a tax liability for options priced below fair market value.

From Our Blog

9/24/2013 2:40 PM
Valuing Common Stock in Anticipation of a Biotech IPO

My article “Valuing Common Stock in Anticipation of a Biotech IPO” appeared in the May 2012 issue of Business Valuation Update, published by... (more)