Business Law

read
Business Law

President Trump’s Executive Order Deals Blow to Proposed 2704 Regulations

by Jeramie J. Fortenberry, JD, LLM (Taxation) | Director of Education, WealthCounsel

Since their publication on August 4, 2016, the proposed regulations on valuation discounts for family-owned businesses under Internal Revenue Code (Code) § 2704 (Proposed Regulations) have drawn the ire of the estate planning community. The Proposed Regulations made several significant changes aimed at restricting the use of minority discounts to transfer family-controlled business interests at a lower estate tax value.

The end of uncertainty might be in sight with President Trump’s issuance of Executive Order 137891 and the corresponding implementation by the Internal Revenue Service (IRS) in IRS Notice 2017-382. Notice 2017-38 was issued in response the Executive Order’s requirement to identify and reduce regulatory tax burdens. By identifying Code § 2704 as burdensome, Notice 2017-38 dealt a critical—and perhaps fatal—blow to the Proposed Regulations. This article summarizes Notice 2017-38 and its effect on the Proposed Regulations.



Complete the form to get your free guide

Related Resources

C Corp Thumbnail
read
Business Law

Avoiding Double-Taxation on C Corporations

Read our Insight Brief, “Avoiding Double-Taxation on C Corporations” C corporations are often an excellent but overlooked entity choice in estate planning.

Learn More
IB Last Minute Planning Opportunities thumbnail
read
Business Law

Last-Minute Opportunities Before the New Tax Law Takes Effect

The Tax Cuts and Jobs Act takes effect in 2018. Here's what planners should be talking to clients about before 2017 is over.

Learn More
TP Tax Reform Analysis 2017 thumbnail
read
Trusts & Estates

Tax Reform is Here: What You Need to Know to Advise Your Clients

The 2017 tax reform package is the most significant change to tax law in a generation. Find out what it means for estate planning and business clients in this in-depth thought paper.

Learn More

Get the Premier Magazine for Industry Thought Leaders