Treasury Department targets several tax rules for possible changes: of particular interest to some foundries is the listing of the treasury's proposed regulation which would disallow or curtail many valuation discounts used in estate planning when calculating gif and estate tax liability.
The U.S. Department of Treasury has released its interim report on reducing the tax regulatory burden. The report identifies eight federal tax regulations issued on or after Jan. 1, 2016, which impose an undue burden on U.S. taxpayers, add undue complexity to the federal tax laws, or exceed statutory authority of the IRS. Of particular interest to some foundries is the listing of the Treasury's proposed regulation which would disallow or curtail many valuation discounts used in estate planning when calculating gift and estate tax liability. AFS had submitted comments last year calling on the Department to formally withdraw the proposed regulations "Estate, Gift, and Generation-Skipping Transfer Taxes; Restrictions on Liquidation of an Interest," 81 Fed. Reg. 51,413 (August 4,2016). AFS had noted that the proposed regulations would discourage families from continuing to operate and build their family foundries and passing them on to future generations.
The interim report also includes final rules that recharacterize certain corporate debt as equity, a rule that limits the tax benefits of intercompany loans, as well as a rule which made it harder for U.S. companies to transfer certain assets to foreign corporations, where they can defer U.S. taxation until they bring income home.
Treasury is seeking public comments on the interim report and asks whether and how the rules should be "rescinded or modified." A final report on how the Department plans to mitigate the burdens of these regulations is due to the president by Sept. 18. AFS will be filing comments on the Treasury's report and call for the withdrawal of the estate tax proposal, underscoring how the proposed regulations far exceeded IRS's statutory authority and would have a significant financial impact on family-owned foundries.
Stephanie Salmon, AFS Washington Office; Jeff Hannapel & Christian Richter, The Policy Group, Washington, O.C.
Caption: The U.S. Department of Treasury has released its interim report on reducing the tax regulatory burden.
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|Title Annotation:||WASHINGTON ALERT|
|Author:||Salmon, Stephanie; Hannapel, Jeff; Richter, Christian|
|Date:||Aug 1, 2017|
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