On Dec. 1, the U.S. Department of Treasury held its public hearing on newly proposed regulations under Internal Revenue Code Section 2704, which limit valuation discounts for liquidity and marketability. Almost 30,000 formal comments were submitted to the Treasury, nearly all of which called for the withdrawal of these regulations.
Members of allied organizations and coalitions gave over five hours of oral testimony to Treasury officials, all which of called for a withdrawal of the regulations. No testimony was given in defense of the regulations. While a host of wide ranging groups made the call to rescind these regulations, the Policy and Taxation Group and Family Enterprise USA were the sole organizations to provide testimonies from actual family business owners and heads of families before the Treasury.
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