Treasury Department Recommends Withdrawing Estate Tax Valuation RulesTuesday, October 10, 2017
(North American Meat Institute)
The Department of the Treasury (Treasury) last week submitted a report to President Donald Trump formally recommending withdrawal of the proposed regulations under Section 2704 of the Internal Revenue Code regarding family business valuation. The Treasury contends the proposed rules , issued in August 2016, are both "unworkable" and "impractical," and could eliminate valuation discounts in situations where they properly should apply.
In comments filed last year, the Meat Institute stated the proposed changes to estate transfer tax rules would have "eliminated or greatly reduced valuation discounts for lack of control and lack of marketability for family businesses, discouraging families from continuing to operate and build their businesses."
Treasury's recommendations were issued as part of a final report published in accordance with Executive Order 13789, which required the Department to identify and reduce tax regulatory burdens that impose undue financial burdens on U.S. taxpayers or otherwise add undue complexity to federal tax laws. The Treasury and Internal Revenue Service will soon publish the withdrawal of the proposed regulations in the Federal Register, according to the report.share on facebook share on twitter