Estate Tax Update
The Treasury Department has formally recommended withdrawing the Section 2704 regulations on family business valuation. These regulations would have increased the death tax burden on family businesses.
Treasury's final report issued today in accordance with the President's Executive Order 13789 lists Sec 2704 under proposed regulations to be withdrawn entirely:
After reviewing these comments, Treasury and the IRS now believe that the proposed regulations’ approach to the problem of artificial valuation discounts is unworkable. In particular, 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.Withdrawal of these regulations is a significant victory for small businesses ($18 Billion according to President Obama's FY13 Budget) as we continue to push for repeal the death tax. Thanks to all the groups that helped push back.
In light of these concerns, Treasury and the IRS currently believe that these proposed regulations should be withdrawn in their entirety. Treasury and the IRS plan to publish a withdrawal of the proposed regulations shortly in the Federal Register.
Please visit www.masoncontractors.org/positions/estate-tax-rule-change for additional information.
About the Author
Jeff Buczkiewicz is the President and CEO of the Mason Contractors Association of America. Jeff has worked in the masonry industry for several years as the Executive Vice President of the Building Stone Institute and the Director of Marketing and Membership for the Mason Contractors Association of America. Jeff has also served as Secretary on the Board of the Natural Stone Council and is a former Board Member of the StonExpo Federation.