On July 7, 2017 the U.S. Treasury Department released Notice 2017-38 raising the possibility of revoking eight proposed or final tax regulations that may impose undue financial burdens on U.S. taxpayers.
President Trump signed Executive Order (EO) 13789 on April 21, 2017 directing the U.S. Treasury to review all “significant tax regulations” to mitigate the burden imposed by the regulations. The U.S. Treasury reviewed a total of 105 temporary, proposed and final regulations issued between January 1, 2016, and April 27, 2017.
Proposed REG-163113-02, under Section 2704, concerning restrictions on liquidation of an interest for estate, gift and generation-skipping transfer taxes, is one of the eight tax regulations under review.
On August 4, 2016, the IRS issued proposed regulation REG-163113-02 which, if adopted, would limit or preclude the use of valuation discounts for transfers of interests of family owned businesses for estate, gift, and generation-skipping transfer tax purposes. This could ultimately result in increased tax liabilities.
The Treasury Department is accepting public comments concerning the regulations through August 7, 2017.
For more information, or to discuss how this impacts you or your family owned business, contact us.