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KOHLER FAMILY WINS HIGH-STAKES DUEL OF APPRAISERS
July 26, 2006
It would be sporting for the Kohler family, heirs to the fancy plumbing parts business, to send a bottle of champaign to Robert Schweihs. His efforts may have increased the family net worth by $65 million yesterday.
Frederic Kohler died owning 12.85% of The Kohler Company. The IRS and the family couldn't agree on the value of Mr. Kohlers stock, so the Tax Court held an appraisal duel. Mr. Scweihs, an author and a partner at Willamette Management Associates, was the family's champion; the IRS hired Scott Hakala of CBIZ, another appraisal firm.
As you might expect, the appraisal results differed. Mr. Schweihs valued the stock at $47,009,625; Mr. Hakala came up with a $144.5 million value on behalf of the IRS. That meant over $65 million of estate taxes and penalties were at stake.
Yesterday the Tax Court decided the winner. The Court accepted Mr. Schweihs value, giving the family a complete victory.
The Moral? If you have a lot at stake, the right appraiser can make all the difference.
Link: Kohler, T.C. Memo 2006-152
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