Without a valuation and the proper due diligence the transaction can be unraveled in an audit. If this occurs there could be substantial estate or income taxes imposed as well as penalties and interest.
If you are asking this question in the first place, then its probably time for a new accountant. Call our offices today. As highly recommended tax accountants providing financial accounting and taxation services in the Chicagoland Area, we have the experience to help you and your company. Call or e-mail Accounting Solutions today.