PRW News

Identifying and Reducing Tax Regulatory Burdens

Per its Second Report to the President on Identifying and Reducing Tax Regulatory Burdens, Treasury, with the IRS, has decided to withdraw the proposed regulations under IRC §2704 in their entirety. These proposed regulations were designed to eliminate “artificial” valuation discounts for intra-family transfers of interests in family-controlled entities (FCEs) by disregarding any restriction on an owner’s ability to liquidate an FCE interest, which would have effectively prohibited the use of traditional fair market valuation standards for these transfers (see WRMarketplace No. 16-33 for a detailed discussion of the proposed regulations). In its press release accompanying the report, Treasury stated that the proposed regulations would have hurt family-owned and operated businesses by limiting valuation discounts. The regulations would have made it difficult and costly for a family to transfer their businesses to the next generation. This report also states that “Treasury and the IRS currently agree with commenters that taxpayers, their advisors, the IRS, and the courts would not, as a practical matter, be able to determine the value of an entity interest based on the fanciful assumption of a world where no legal authority exists.” Treasury and the IRS plan to publish a withdrawal of the proposed regulations shortly in the Federal Register.

 

Identifying and Reducing Tax Regulatory Burdens – Executive Order 13789

 

 

 

 

By clicking on the above link you are leaving prwwealthmanagement.com. The website you are accessing is created and maintained by another entity. We make no representation or warranty with respect to the information contained on the site or that it is appropriate in all jurisdictions or countries, or for use by all investors or counterparties. The products and services discussed at this site may not be appropriate for sale or use by all investors or counterparties. By providing this link, we are not providing you with investment advice or offering securities for sale to you. All persons and entities that access this site do so on their own initiative and are responsible for compliance with applicable local laws and regulations.

Lorem ipsum dolor sit amet, consectetur adipiscing elit pretium urna quis tortor consectetur et pretium elit