The Treasury Department announced last week that it would withdraw proposed tax regulation under Sec. 2704 that would have severely curtailed the use of valuation discounts. Under the President’s executive order, the Treasury identified eight proposed regulations, including Sec. 2704, that did not meet the department’s commitment to reduce the complexity and burden of tax regulations. The Treasury Department received over 9000 comments on the proposed regulations, most of which were negative and argued that the proposals would have produced unrealistic valuation results with no resemblance to reality. In addition, the cost of compliance would have outweighed any potential gain.
Ellin & Tucker’s valuation and tax professionals were actively involved in advocating for the withdrawal of these proposed regulations. Over the past year, our professionals met with senior Treasury Department and administration members in Washington D.C. to outline concerns regarding how these regulations would impact our family-owned business clients.
For more detailed information on the other regulations to be withdrawn or revised, please consult the following:
R. Christopher Rosenthal, CPA/ABV/CFF, ASA, AEP is a global leader in the forensic, damages and valuation services profession with more than 30 years of experience. As a director in Ellin & Tucker’s Forensic and Valuation Services Group (FVS), he has been responsible for hundreds of domestic and international consulting engagements throughout the United States as well as Europe, South America, and the Middle East. He has testified over 150 times on commercial damages, valuation, and forensic accounting issues in federal, state and international courts. For more information, please contact Chris by email at email@example.com or phone at 410.727.5735.