Bloomberg BNA features quotes from McGuireWoods tax partner Ron Aucutt
concerning the pending release of IRS rules to address restriction on valuation
discounts, also citing his July whitepaper previously published by The American
College of Trust and Estate Counsel.
In the July 27 article, titled “Crystal Ball-Gazing on IRS Valuation Discount
Rules Continues,” Aucutt points out that the IRS may be more likely to increase
transfer tax values on arrangements with which the agency is included.
“Don't expect the IRS to respect restrictions, for purposes of allowing gift
and estate tax on reduced values rather than full values, just because they are
imposed for nontax reasons,” says Aucutt. “The most vulnerable and most likely
to be affected by the upcoming rules is the family limited partnership that
holds nothing but marketable stocks and bonds. Don't expect to avoid discount
restrictions just by having a nontax reason for creating the arrangement.”
Aucutt is among the many lawyers currently discussing the proposed IRS rules,
which are expected to be released in time for the joint meeting of the American
Bar Association in September.
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