Republican members of the House Ways and Means Committee today sent a letter to Treasury Secretary Lew requesting that Treasury withdraw proposed regulations relating to the valuation of interests in certain family controlled corporations, partnerships, and other entities for purposes of the estate, gift, and generation-skipping transfer taxes. No Democrats signed the letter.
The letter expresses concern that the proposed regulations are inconsistent with congressional intent and urges that “any new proposal in this area should be clearly defined and narrowly targeted within the reach of the applicable statutory rules.”
Read a release from Ways and Means Committee Chairman Kevin Brady that includes the full text of the letter to Secretary Lew.
In early August 2016, the Treasury and IRS released a notice of proposed rulemaking (REG-163113-02) concerning the valuation of interests in corporations, partnership, and other entities for purposes of the estate, gift, and generation-skipping transfer taxes.
Specifically, the proposed regulations address the treatment of certain lapsing rights and restrictions on liquidations in determining the value of the transferred interests, and are intended to prevent under-valuation of these transferred interests. For an initial discussion about the proposed regulations, read TaxNewsFlash-United States.
In September 2016, 41 Senate Republicans sent a letter to Treasury Secretary Lew requesting that the proposed regulations be withdrawn.
House Republicans also have introduced two bills relating to the proposed regulations—H.R. 6042 and H.R. 6100. No Democrats have sponsored either of these bills, and it is not clear whether the House or Senate may act on any legislative proposals relating to the proposed regulations this year. For more information about the Senate Republican letter and the two House bills, read TaxNewsFlash-United States.
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.