SOCIAL SECURITY 2023 UPDATE SSI FOR NYS RESIDENTS Individual $1,001/month Couple $1,475/month MAXIMUM TAXABLE…
On October 4, 2017, the U.S. Department of the Treasury announced that it is recommending the complete withdrawal of the proposed regulations under Section 2704 of the Internal Revenue Code, which would have placed restrictions on liquidation of an interest for Estate, Gift and Generation-Skipping Transfer Taxes had they been adopted.
These regulations, which were announced by the IRS on August 2, 2016 and published to the Federal Register on August 4, 2016, were aimed at the purported abuses of applying artificial valuation discounts in family-controlled entities and in connection to estate, gift, and generation-skipping transfer taxes. The IRS held a hearing on the 2704 proposed regulations where numerous valuation experts, business advisors and taxpayer advocacy groups commented on potential problems and other valuation issues that would result if the regulations were finalized in its initial form.
The Treasury Department stated that they “now believe that the proposed regulations’ approach to the problem of artificial valuation discounts is unworkable”, and recommend that the regulations “be withdrawn in their entirety.” Withdrawal of the proposed regulations is expected to be published in the Federal Register in the near future.
This is welcomed news to closely-held business owners and their families, as these regulations would have resulted in significant restrictions on succession and estate planning options.
If you would like more information on this announcement or would like to discuss how these issues might impact your family business, please contact us.