Hearing on the Proposed 2704 Regulations Leaves Open Questions

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by Jeramie J. Fortenberry, JD, LLM (Taxation) | Executive Editor and Legal Education Faculty

On December 1, 2016, representatives of the Treasury and the Internal Revenue Service (IRS) held a hearing to discuss the proposed regulations on valuation discounts for family-owned businesses under Internal Revenue Code (Code) § 2704 (Proposed Regulations). The Proposed Regulations were released on August 2, 2016. This article summarizes that hearing in light of the Proposed Regulations and concludes with a few practical takeaways.