Ron Aucutt Offers Insights into Anticipated IRS Valuation Discount Regulations

July 28, 2015

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.

View Ron Aucutt’s ACTEC whitepaper.

To keep track of estate tax developments, read Ron Aucutt’s Top 10.