News - Tax
November 3, 2016

Comments Filed on Treasury’s Estate Tax Proposed Regulation

Yesterday, Western Growers participated in comments filed by the Family Business Estate Tax Coalition on recent proposed regulatory changes by the Department of Treasury and Internal Revenue Service.  

The proposed regulatory change would have a significant impact on estate planning and estate tax burdens. The regulations would impair a family owned business’s ability to use valuation discounts for lack of control and lack of marketability. Click here for a broader summary of the proposed regulations.

Western Growers also joined a letter earlier this fall in opposition to these regulatory changes. In addition to concerns being raised by family businesses, there is disagreement even within the federal government on the impact of these proposed changes. The Small Business Administration’s office of advocacy submitted comments raising concerns and disagreeing with the approach proposed by Treasury and the IRS, suggesting that these changes will have a significant impact on small business entities and therefore a fuller economic impact assessment must be completed.

With the concern and opposition that has been voiced over these proposed regulatory changes, we hope that Treasury and the IRS will reconsider moving forward on these proposed changes, based on competing interpretations of whether the agencies have the statutory authority to make these changes, litigation would likely ensue if they move forward with these as proposed.    

For question, contact Ken Barbic at (202) 296-0191.