Legislation Introduced to Prevent Enactment of Valuation Rules
Sen. Marco Rubio (R-Fla.) and Rep. Warren Davidson (R-Ohio) reintroduced legislation to prevent the IRS from enacting its highly controversial estate valuation discount proposed regulations introduced in August 2016. The proposed regulations were purportedly designed to stop abusive practices where valuation discounts were being used solely as an estate tax dodge on transfers of interests in closely held businesses. But the rules arguably went way beyond what the statute (Code Sec. 2704) originally intended. During the last Congress, similar legislation introduced by Davidson (H.R. 6100) and Rubio (S. 3436) attempted to stem the regulations by blocking funding. The bills garnered a total of 92 cosponsors in the House and five in the Senate. Stay tuned and Happy New Year!