The Internal Revenue Service (IRS) requirements for the valuation of a business through a buy-sell agreement for estate tax purposes are as follows: 1. The buy-sell agreement must be a bona fide arm’s length transaction. 2. The agreement must obligate the estate of the deceased shareholder to sell only to the surviving shareholders (who, in turn, are not obligated to buy the shares). 3. The agreement must prohibit all shareholders from disposing of their interests

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