Congress to Address IRS Proposed Regulation

In August the IRS proposed regulations that may eliminate some or almost all of the discounts that family farms can take via transfer of land or operations. Cliftonalleanlarson principle and Farm CPA Today blogger Paul Neiffer says

Neiffer: "Essentially it is going to reduce or eliminate the ability for farm families to make transfers to the next generation and take a minority discounts. Essentially when a person transfers an interest that is less than 50 percent, as a valuation we can deduct 15, 20 or 25 percent off of the value and arrive at a lower value for estate tax purposes and gift tax purposes. The IRS is essentially proposing to eliminate these type of discounts for almost all family transfers especially if it occurs within three years of death or even any family transfer they are proposing to eliminate the minority interest discount."

Republicans in both the House and Senate are trying to include provisions in the budget legislation to stop the IRS from implementing these 2704 Regulations.

The National Cattlemen's Beef Association along with 3,800 organizations and family-owned enterprises sent letter to Treasury Secretary Jacob Lew adamantly opposing and asking for the withdrawal of these proposed estate tax regulations of the Department of Treasury's IRS.