The IRS may face challenges as they work to finalize newly proposed regulations about curbing particular gift tax and estate planning tactics according to practitioners in the field. Those proposed regulations were issued on August 2nd and place limitations on using valuation discounts that minimize the overall value of assets inside a family owned business. This might have the effect of lowering a decedent’s gift tax and estate tax liability at the time of death.
Practitioners, however, believe that taxpayers as well as their advisors are planning to bring up multiple arguments against the IRS rules at a hearing scheduled in early December. The majority of this discussion is expected to revolve around whether or not the IRS has overstepped their bounds by issuing these regulations. If the rules are finalized as is, that question could be answered in U.S. tax court.
According to one expert, one of the primary reasons to question whether the IRS and the treasury department have overstepped their authority, is to look beyond the Obama administration’s budget proposals. If you have questions about how potential changes in the laws could impact you and your estate planning, set up a consultation with an experienced attorney today to learn more.
Although it’s not yet clear how this issue will proceed, it’s smart to plan ahead and speak to an attorney knowledgeable about advanced estate planning issues now. A New Jersey estate planning attorney can help you determine how these issues will impact you now and in the future, should the changes be accepted.