A public hearing on proposed revisions to Internal Revenue Service (IRS) REG–163113–02, entitled “Estate, Gift, and Generation-Skipping Transfer Taxes; Restrictions on Liquidation of an Interest” has been scheduled for December 1, 2016 in Washington D.C.
Specifically, these proposed regulations concern the treatment of certain lapsing rights and restrictions on liquidation in determining the value of the transferred interests. These proposed regulations affect certain transferors of interests in corporations and partnerships and are necessary to prevent the undervaluation of such transferred interests.
To read a complete explanation of the proposed amendments and the entire IRS Notice of Proposed Rulemaking, click here.
Colodny Fass assists clients with estate planning and corporate succession.