ARSA RSS Feed ARSA LinkedIn
Contact Us Payment Portal

IRS Proposes Significant Restrictions to Estate Tax Discounting Rules

On Aug. 4, the Internal Revenue Service (IRS) issued a notice of proposed rulemaking (NPRM) restricting the discounting of shareholder stock in family-owned operations for the purpose determining federal estate tax liability. Under current law, married couples are allowed $10.9 million in a lifetime exclusion for federal estate and gift taxes. Assets above the threshold are taxed at a 40 percent federal rate.

Traditionally, the IRS and the courts, for purposes of the federal estate and gift taxes, have permitted the valuation of privately-owned business interests to include a “lack of control” and “lack of marketability” discount because some stakes are worth less since they are harder to sell or represent a minority interest. The proposed rule, which applies to corporations, partnerships and limited-liability companies, disregards any restrictions on liquidation or redemption an heir uses to claim a valuation discount if that restriction either lapses after the transfer or the heir or heir’s family has the ability to remove the restriction after transfer. The IRS is also seeking to eliminate the lack of control discount to assignees.

The agency is accepting comments on its proposal until Nov. 2 and will host a public hearing in Washington, D.C., on Dec. 1.



More from ARSA

On Demand – FAA Training on China IPA

Click the image to register for the training session. On Jan. 17, ARSA hosted an online training session led by FAA personnel on the Implementation Procedures for Airworthiness (IPA) established…Read More

ARAC Officially Forming Working Group on Part 145

During its December 2017 meeting, the Aviation Rulemaking Advisory Committee (ARAC), of which ARSA has been a member since its founding, accepted a task to review and reconcile the regulations…Read More

Symposium 2018 – High-Level Access Through E2E Briefings

Registration is officially open for ARSA’s 2018 Executive to Executive Briefings, Legislative Day and Annual Repair Symposium. (Click here to learn more and register now.) The E2E This year, ARSA’s team…Read More

Eight ARSA Training Sessions Acceptable for IA Renewal Credit

Eight of ARSA’s on-demand training sessions have been accepted by the FAA for Inspection Authorization renewal credit under 14 CFR § 65.93. Each session is currently available for registration and…Read More

Unified Agenda Provides Insight into 2018 Rulemaking Priorities

On Dec. 18, the Trump Administration unveiled its Unified Agenda of Regulatory and Deregulatory Actions for 2018. The document provides insights about the priorities and planned actions of executive branch…Read More
ARSA