What's the difference between §409A and ASC 718 valuations?

A §409A valuation determines the FMV of common stock for tax compliance, while an ASC 718 valuation calculates stock-based compensation expenses under U.S. GAAP.

When do I need a new §409A valuation?

You need to update your §409A valuation every 12 months or after any material event like a financing round.

Is a board-approved memo enough for §83(b) at incorporation?

An independent 83(b) election valuation offers third-party substantiation, reducing IRS compliance risks.

How does ASC 820 differ from ASC 718?

ASC 820 measures fair value across various assets, while ASC 718 applies fair value principles to employee stock-based compensation.

Can one valuation serve multiple compliance purposes?

Yes, an integrated valuation aligns multiple requirements. Countsure can satisfy IRS §409A and U.S. GAAP ASC 718 needs simultaneously.

What documentation will my auditor expect?

Auditors require narrative reports detailing company background, financial analysis, valuation methodologies, and assumptions. Countsure delivers audit-ready valuation reports conforming to SSVS-1 and USPAP standards.

What is Rule 701 compliance, and why is it important?

Rule 701 allows private companies to issue equity compensation without registering securities. Compliance ensures eligibility for this exemption, avoiding penalties or regulatory scrutiny.

Do I need a valuation for Rule 701 compliance?

Yes, valuations help verify the fair market value of equity issued, ensuring accurate and compliant reporting under Rule 701.

What is Form 3921, and when must it be filed?

Form 3921 is used to report the exercise of incentive stock options (ISOs). It must be filed with the IRS and provided to employees by January 31 of the year following the exercise.

What happens if Form 3921 is filed late or inaccurately?

Late or inaccurate filings can lead to IRS penalties. Engaging Countsure ensures accurate reporting and avoids potential fines.

Compliance Valuation Services: Reporting You Can Defend

Designed for efficiency and accuracy, our platform integrates all key financial compliance and reporting services into one ecosystem.

Compliance & Financial Reporting Why It Matters

Financial reporting and compliance services play a vital role in business operations and include areas such as ASC 718, Form 3921, 83(b) Elections, IRS §409A Deferred Compensation Compliance, ASC 820 Fair Value Measurement & Reporting, and Rule 701. These frameworks help improve organizational transparency and enable stakeholders to better understand a company’s financial position.

Maintaining accurate compliance and financial reporting helps strengthen stakeholder confidence, reduce legal and regulatory risks, and support better business decision-making. However, companies often face difficulties in handling these processes because of limited time, the requirement for specialized knowledge, and the possibility of errors that may lead to financial penalties. Effectively managing these challenges is essential for preserving credibility and maintaining the trust of investors and regulatory authorities

Compliance Services We Offer

Specialized valuation and compliance solutions designed to support accurate reporting, regulatory requirements, and audit readiness.

VALUATION & REPORTING

ASC 718 Stock-Based Compensation

Precise ASC 718 valuation services to measure and report equity compensation expenses accurately.

TAX COMPLIANCE

IRC 83(b) Election -FMV Substantiation

Independent documentation for your 83(b) election valuation to securely lack in your tax basis.

Financial Reporting

ASC 820 Fair Value Measurement

Rigorous ASC 820 fair value measurement for portfolios, investments, and financial instruments.

409A COMPLIANCE

IRC §409A - Deferred Compensation Compliance

Ensure your deferred compensation plans comply with IRS §409A regulations and avoid penalties.

INCENTIVE STOCK OPTIONS

Form 3921-Reporting for Incentive Stock Options

Accurate reporting of incentive stock options exercise for employees and the IRS

EQUITY COMPENSATION

Rule 701-SEC Exemption for Equity Compensation

Assist private companies in issuing equity compensation under Rule 701 exemption.

Ready to Reclaim A Bulletproof Compliance Valuation

Are you worried your recent valuation won’t hold up in due diligence? Submit your contact info now to get a defensible, fixed-fee valuation delivered in just 9-12 days.

Organizations Entrusting Us with Excellence

Why Choose Countsure for Compliance Valuation Work

Each factor plays a distinct role in determining the defensible, audit-ready value of your closely held business.

One Integrated Platform

Make compliance easier with one intuitive platform that keeps all your financial reporting organized and hassle free.

Operational Efficiency

Improve operational efficiency by simplifying compliance workflows, helping your team save valuable time and focus on business growth.

Reduce Risk & Errors

Reduce the risk of mistakes, fines, and compliance issues through our detail oriented and accurate reporting services.

Tailored Support

Access tailored compliance support designed around your business requirements, ensuring flexibility and personalized assistance at every step.

Startup to Enterprise

We tailor engagements for everything from early-stage startups to complex enterprises.

Trusted by 5,000+ Businesses

Over 5,000 businesses rely on Countsure for accurate, efficient, and industry focused compliance management solutions.

Built for Companies That Take Compliance Seriously

01

Closely held businesses and S corporations managing transitions and reporting.

02

Startups issuing equity to attract talent.

03

Funds, family offices, and finance teams requiring recurring valuations.

04

CPA firms and legal counsel seeking a trusted valuation partner.

Frequently Asked Questions

When do I need a gift and estate tax valuation?

You need a certified valuation when transferring business interests, real estate, or complex private assets to family members, or when filing IRS Form 706 (Estate Tax) or Form 709 (Gift Tax).

What is IRS Revenue Ruling 59-60?

It is the official IRS guideline outlining the specific methods and factors that must be considered when determining the fair market value of a closely held business or private corporate stock for tax purposes.

How long does a valuation take?

CountSure delivers complete, certified valuation reports in just 1 to 2 weeks, depending on the complexity of your assets and how quickly documentation is provided.

What documents do I need to provide?

You will typically need to provide three to five years of historical financial statements, projected financials, tax returns, organizational documents (like operating agreements), and a capitalization table.

Will my valuation hold up under IRS audit?

Yes. Our reports are prepared by AICPA-certified appraisers using IRS-approved methodologies. We boast a 100% audit success rate and provide expert testimony if your valuation is ever questioned.

Can I use the same valuation for multiple purposes?

While a single certified valuation can often support multiple related planning needs (like a buy-sell agreement and a gift tax filing), valuations are tied to a specific “valuation date.” If significant time has passed, a new or updated appraisal may be required.

What is the difference between DLOM and DLOC?

A Discount for Lack of Marketability (DLOM) reflects the difficulty of quickly selling private shares compared to public stock. A Discount for Lack of Control (DLOC) reflects the reduced value of a minority interest that cannot dictate business decisions. Both can legally reduce your taxable asset value.

How much does a gift and estate tax valuation cost?

Costs vary based on the complexity of the business entity, the number of entities being valued, and the specific reporting requirements. Contact us for a precise, transparent quote during your free consultation.

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