• View detailsArticle

    Trump's IRS Audit Files Offer 'Treasure Trove'-If Congress Ever Gets Them...

  • View detailsPresentation

    2019 Graduate Texas Trust School...

  • Firm News

    Michael A. Villa, Jr. has been appointed Chair of the Tax Controversy Committee of the State Bar of Texas Tax Section for the 2019-2020 year....

VIEW MOST RECENT
 
 
 
 
 
 
View All
     
Showing 3 of 10

Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P.

901 Main Street, Suite 3700
Dallas, TX 75202

Phone: (214) 744-3700
Fax: (214) 747-3732
Toll Free: (800) 451-0093

submit inquiry
blog

Congress Takes Aim at the Proposed 2704 Regulations

By Christopher C. Weeg on September 28, 2016

As I discussed in detail in my August 4, 2016 blog post, "Without Further Ado, The Proposed Regulations Under Section 2704", the new proposed regulations are undoubtedly controversial. In their current form, they disregard longstanding valuation principles backed by decades-old legal precedent, and, in doing so, virtually eliminate minority and lack of marketability discounts. To no surprise, the regulations have come under fire from family business owners, tax practitioners, and appraisers, who criticize the new rules as regulatory overreach and the Treasury’s attempt to change and make law.

Responding to its constituents’ concern, Congress has taken action. This month, House Republicans have introduced two separate bills that seek to nullify the proposed regulations, with the second bill going one step further by cutting off federal funding to “finalize, implement, administer, or enforce such proposed regulations or substantially similar regulations.” Republican members of both the House Ways and Means Committee and the Senate Finance Committee are also drafting letters that oppose the regulations.

Thus far the Treasury has shown no signs of slowing, and public comments to the new proposed regulations are due November 2.   A public hearing will be held on December 1. Stay tuned for further developments.  If you have any questions on how these regulations could affect you or your clients, please contact Chris Weeg at (214) 749-2430 or  cweeg@meadowscollier.com.