IRS Estate-Transfer Proposal Meets Rare Repeal Bill

Ed Krzanowski was quoted in an article, "IRS Estate-Transfer Proposal Meets Rare Repeal Bill," in Law360. The article is about the Internal Revenue Service's new bill to nullify estate-transfer rules of interests in corporations and partnerships for estate, gift and generation-skipping transfer tax purposes. Krzanowski questioned how realistic it is to value an interest if every shareholder in a closely held family business had the right to get out and liquidate within six months. "Too many of the realities are getting disregarded in terms of how family businesses actually operate and what the value of the interests truly are," Krzanowski said. "The IRS is trying to close what it sees as a loophole with respect to investment vehicles that families set up that aren't necessarily active trades or businesses, and I think what the IRS is doing is hitting both the active trade or business just as hard as it is hitting the family investment vehicle."