Overview
Law360 quoted Steptoe New York partner Beth Tractenberg in an August 4 article titled “Tax Pros Question Legality of New IRS Estate Transfer Rule.” The article discusses the Internal Revenue Service’s new attempt to value transferred interests in partnerships and corporations for estate tax purposes more fairly.
Ms. Tractenberg explains that the agency is really trying to do away with the practice of senior generations restructuring a business while allowing the future value to go to the younger generation in the family while escaping estate and gift taxes. “For those people who try to use techniques to discount their assets so they can get more out of their estates, [the IRS is] trying with these proposed regulations to reduce or eliminate that ability. If you’re unable to get as much value out of your estate by doing this kind of planning, then you would have more value left in your estate that is subject to estate tax.”
The full article can be read at Law360 (subscription required).